The Kindle eReader device from Amazon had been selling well, that was until the Apple iPad came along — those 3 .3 million sales must have had an effect on Kindle sales? Well it seems like it has, as Amazon recently announced that profit for this period was lower than expected. However, Amazon has a plan — they have a new Kindle coming out with the cheapest model costing just $139.
Amazon hopes that the new price and new features will help it in the fight against the iPad, but will the plan succeed? Will the new features be a vast improvement over the older model, and will Amazon be able to convince consumers to purchase it?
It was no secret that the grey contrast was seen as a big letdown once the iPad came out, so Amazon had increased this by 50 percent on the new Kindle. However, this does not get around the fact that it is still not color. There is one added benefit with the Kindle; you can read it in direct sunlight, something that you cannot do with the iPad.
Where the iPad suffers though is its price, $499 for the cheapest model compared to $139 for the new Kindle. This is where Amazon has been winning out, and they have no fear that Apple will ever reduce their price.
The Kindle has been designed for just reading books, and it does this far better than the iPad, with thousands more books available. However, it is the other features on the iPad that has made it a huge success — one that makes me wonder if the Kindle will ever survive once Apple partners with more publishers.
For an in-depth look into Amazon’s strategy with the Kindle, read Rich Jaroslovsky article on Bloomberg.