Kindle Reader Goes Global
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Amazon has just cut the ticket price of its Kindle 2 e-book reader by an additional $40. This is the second price reduction in the eight months since the K2 was released in February. The price now stands at $259, $100 lower than the original launch price of $359.
Also available, after a lot of waiting, is an international Kindle 2. This costs an extra $20 and is now available to customers external to the United States. Currently, the order needs to be placed with Amazon USA. The device will be shipped with a power supply suitable for connection into a US wall socket and – depending upon which country you live in – you may be required to pay customs duties. However, even taking all that into account, it is still a noteable development which will increase the size of the market available to Amazon.
According to Amazon founder, Jeff Bezos, increases in both sales and production volumes mean that Amazon is able to pass savings due to economies of scale on to its customers. The Kindle reader is selling well and there is, certainly, something in what Bezos says.
However, the fact that many of Amazon’s competitors either have new e-book readers ready for imminent launch, or in the development pipeline, is probably also a factor. Companies like Plastic Logic, iRex, Samsung and Apple are all very active and are chasing a share of the fledgling – but rapidly expanding – e-book reader market.
Not to mention Sony who, after a period in the doldrums, are currently resurgent. The company has already [spin[released|launchedtwo new readers and has confirmed that its large display Sony Daily Edition reader reader will be launched in time for Christmas this year.
Although the current market leader – by a country mile – Amazon cannot afford to rest on its laurels. And given the key impact of the Kindle reader family on the development of the e-book reader market to date, there is no reason to suppose that they will.
It will be interesting to see the sales figures for the 2009 Christmas gift season. It seems as if there is finally some real competition for the Kindle reader. Prices will inevitably fall – which will be good news for consumers.
The market is growing very rapidly – but there is still a long way to go before it stabilises. Whether or not Amazon will hold on to its current dominant position remains to be seen.
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