Unique Original Articles » Amazon Kindle to ship with ads on May 3

Amazon Kindle to ship with ads on May 3

Author: Barbara Coswell

E-readers, tablets and other mobile devices are upending the traditional print industry, which suits Amazon just fine, as a result of the Kindle. Once the $114 Kindle with Special Offers ships May 3, Amazon should improve its 60 percent share in the e-reader market. However there's a caveat for people, reports the Christian Science Monitor. The latest Kindle offering will be ad-supported. Source for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Putting ads on a kindle; pay less

The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. This is the first time, however, that a price reduction will consist of the placement of ads on the popular e-reader, a move geared to capture ground from the iPad in the e-reader market. May 3 is when the kindle will start with Special Offers. The advertisement-supported version could be found in Best Buy and Target for the Kindle 3.

Founder and CEO of Amazon Jeff Bezos claim it is a "chicken in every pot" move. Everybody will want the Special Offers $114 kindle:

"We're working hard to make sure that anyone who wants a Kindle can afford one," he said via a statement.

An ad-based kindle might bright out typical concerns. These concerns were displayed as responders on a Christian Science Monitor article on price cuts. One reader argues for a free ad-based Kindle with $0.99 books, however that reflects another thorny issue concerning the price of e-books. The $25 discount isn't enough, according to some people. Most experts' say it is okay though since the ads only come up on the bottom of the home screen and on the screen saver.

"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.

Price matters

The guess TechCrunch has is the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. Traditional marketing psychology suggests that the ".99" price point is a magic number.

This isn't real anymore though according to research done at the New York Columbia Business School. The Columbia study showed that the "dollar-minus" approach bringing it down to 99 cents was not nearly as effective as bring it up a penny for a "dollar-plus" approach. Sales of goods that used the dollar-plus method increased by 3 percent, and customers felt greater trust for dollar-plus brands as the prices were perceived as being less manipulative.

Articles cited

Christian Science Monitor


Columbia Business School


Knowing and Making




Kindle sales tripled after last price drop


Source for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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