Unique Original Articles » Advertisement supported Kindle to ship at $114

Advertisement supported Kindle to ship at $114

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. But there's a caveat for readers, states the Christian Science Monitor. The latest Kindle offering can be ad-supported. Article resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Kindle price cut with ads

The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. The price deduction never involved advertisements before this. Doing this, the e-reader market will be breached making the iPad competition. The Kindle with Special Offers is slated to ship May 3. Target and Best Buy will sell the advertisement-supported version of the Kindle 3 in stores at that time.

It is "chicken in every pot" decision made with the $114 kindle with Special Offers according to Jeff Bezos, the Amazon CEO and founder:

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

There were many responders to an article by the Christian Science Monitor that many might have about the kindle with ads. With 99 cent books, one reader would be okay as long as the ad based e-kindle was free. The price of books becomes a different issue then. Another reader concurs that a $25 discount is not enough to make up for the presence of ads, however one thing experts believe Amazon has done right is to isolate the advertisements to the Kindle's screensaver and the bottom of the home screen.

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

Importance of a price

TechCrunch predicts the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. 99 is a magical number. Most marketing would suggest this.

This isn't real anymore though according to research done at the New York Columbia Business School. A dollar plus approach, adding a penny, was more effective than the dollar minus approach, taking a penny away. The Columbia study showed this clearly. Dollar plus brands seemed less manipulative to customers which is why the dollar plus method sold 3 percent more.

Articles cited

Christian Science Monitor


Columbia Business School


Knowing and Making




Kindle sales tripled after last price drop


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