It's On: Amazon Announces $139 Kindle

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Paul Thurrott

Windows IT Pro

InstantDoc ID #125685

Online retailing giant Amazon this morning announced its third-generation Kindle eBook reader, which is smaller, lighter, and faster than its predecessor, while offering the same screen dimensions and 50 percent better contrast. Best of all for potential customers, the new Kindle is getting a significant price cut, with the base model costing just $139.

For this generation of the Kindle, Amazon is offering two versions: a 3G + Wi-Fi model with free 3G wireless connectivity and international wireless coverage that costs $189, as before, and a new $139 Wi-Fi model that eschews those features. They join the larger Kindle DX, which features a 9.7" screen and costs $379. (The Kindle DX is targeted at the educational market.)

"Readers are going to do a double take when they see Kindle's bright new screen and feel how remarkably light the smaller design feels in one hand," said Amazon Founder and CEO Jeff Bezos. "If you don't need the convenience of 3G wireless, we have an incredible new price point—$139 for Kindle Wi-Fi. Kindle Wi-Fi has all the same features, same bookstore, same high-contrast electronic paper display, and it's even a tiny bit lighter at 8.5 ounces. "

The new Kindle ships August 27 and is Amazon's latest response to Apple's iPad, a tablet-shaped PC-like device that offers eBook functionality as well as other features. But the iPad starts at $500, and its average selling price of $630 is more than four times the price of Amazon's devices. Also to the Kindle's advantage are its dramatically better battery life (1 month vs. the iPad's 10 hours), far lighter weight and smaller size, and superior screen—which isn't reflective and offers excellent contrast for reading. And the Kindle benefits from a vast media library that the iPad can't match, where most Kindle eBook titles are cheaper than on the iPad.

The new Kindle also undercuts other dedicated eBook readers, such as the Sony Reader, at least for now. Sony's cheapest model, the Reader Pocket Edition, costs $150 but doesn't offer any Wi-Fi functionality.

What Amazon isn't offering, yet, are touch capabilities and color screens. The two technologies "aren't ready for prime time," according to Bezos, not for eBook reading. But the company promises both technologies in a future version.

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@Garrison,

Yes, in February Paul was hilariously blaming Apple for the failure of Amazon's unsustainable "we lose money on every ebook" business model, but he also specifically cited the higher device prices of the iPad.

In fact, what happened is what I said: The general purpose iPad forced a lowering of the price of the single purpose Kindle. Shocking, just shocking.

The inability of Amazon to make sustainable contracts with the publishers is a separate issue, and now, just as in February, Paul's attempt to make Amazon's business failure Apple's fault is ridiculous.

As tayme noted, the iPad price point is what forced a lowering of the Kindle pricing. The ebook price is something you should take up with the publishing companies.

Jones7/29/2010 6:41:34 PM

@Jones, against my better judgement, I've gotta call you on this one. Paul's statement regarding "higher device prices" (paragraph 6) was referring to the higher cost of the iPad when compared to the Kindle, not to an expected raising of the price of the Kindle.

The main focus of that article was that ebooks themselves (not the readers) were about to get more expensive, and yes, that has happened, much to many Kindle fans' chagrin.

I'd certainly expect to pay more for a device which does MANY things, than one which basically does one thing. But the raising of eBook prices on the Kindle store was an unwelcome change in the market to people who, like me, just want a device that does that one thing so very well. I, for one, am just ecstatic that Amazon has not given up on the Kindle devices. I knew they were going to keep the platform alive, but I wasn't so sure they were going to keep making the devices.

I'm also glad that the 3G version of the Kindle's third generation is keeping the model of unlimited 3G access for life, rather than going to a per-month fee like AT&T gets with the 3G versions of the iPad...I'm sure it's very tempting to follow that model, but the one-time-fee is such a better deal for consumers, I'm glad they stuck to their guns for now.

In the end, this is good news for everyone who wants choices, as tayme said. Even if certain concessions had to be made along the way. Such is the free market.

Garrison7/29/2010 5:18:25 PM

Paul apparently can't remember his own writing from one month to the next and assumes that we're all the same way. Remember this?

Apple Entry into Market Means Higher eBook Prices

http://www.windowsitpro.com/article/mobile-and-wireless2/apple-entry-into-market-means-higher-ebook-prices.aspx

Among much other nonsense, Paul told us this would result in "higher device prices".

Of course, markets worked, competition worked, prices are lower. The Kindle is now priced substantially below the iPad, because it only does one thing, while the iPad commands a higher price because it is a general purpose device.

The Paul of last February, who said "And what consumers will get out of this Apple entry, of course, is higher prices. Yet another innovation for which we can thank Steve Jobs, and that's true whether we use a Kindle or an iPad."

Totally and utterly wrong. What consumers got was what Paul always claims he's all for: choice. They can pick the device they want for the tasks they're interested in doing and get a device from a variety of price points with a variety of capabilities.

But then, the nonsense last February was just the typical FUD that characterizes nearly everything Paul writes about Apple.

Jones7/29/2010 3:31:28 PM

The Kindle pricing is getting more competitive. If it came with a Kindle-DX sized screen (9.7" screen) for $139, they might get a sale from me. But the current screen size of the base Kindle is just too small for me. For reading I would prefer the Kindle's e-Ink screen to the iPad screen, but until Amazon comes up with a more attractive price for a product with a larger screen, I'm happy reading books on my iPad.

Weir7/29/2010 12:08:48 PM

I was itching to buy a Nook this week....This news came at the perfect time...I went with Paul the tools advice and pre ordered mine this morning....

But im still getting a ipad once the 2nd Gen comes out...So add me to all them crazy Market-share ipad killer, Ipad killing the Kindle mumble jumble we read about...

Gutierrez7/29/2010 10:22:08 AM

This is one thing that us Kindle fans can thank Apple and the iPad for. The pricing is a direct response to the price of the iPad. There is nothing wrong wit hthat...it is the way of the tech world. On the other hand, the iPad does have access to the Kindle store with the Kindle app - but I think that for a heavy reader like myself, the eInk screen is a better choice...and isn't that what we should all want? CHOICE.

--tayme7/29/2010 10:21:39 AM

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