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

Amazon Kindle to ship with advertisements on May 3

Author: Barbara Coswell

The traditional publishing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting fairly with its Kindle platform. Industry studies indicate that the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the company introduces the $114 Amazon Kindle with Special Offers. What's the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, could be advertisement-supported. Source of article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Is an ad-based Kindle worth $25 off standard price?

About $399 was spent in 2007 on the first Amazon kindle. The price has gone down a lot since then. The price deduction never involved ads 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. The advertisement-supported version can be found in Best Purchase and Target for the Kindle 3.

Amazon founder and CEO Jeff Bezos sees the $114 Kindle with Special Offers as a "chicken in every pot" move:

"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. 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.

Price matters

The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. According to traditional marketing, 99 is magical number.

However, new research from New York's Columbia Business School indicates the advantage is more imagined than it is real anymore. The Columbia study showed the "dollar-minus" approach bringing it down to 99 cents was not almost as effective as bring it up a penny for a "dollar-plus" approach. 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


Article source - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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