Saturday, July 10, 2010

IPAD product launch downward pressure on prices eBook Reader

Amazon seemed he had found the ideal product for its business model as a reader Amazon Kindle. His unit of market control on the development of e-book has been almost total. Around 60% of the market (the Sony Reader trailed in second place with a market share of 35%), and it was difficult to see, despite the fact that almost all new players, immediately released the name "Kindle Killer" is where the competition is coming.

After AppleHe began his IPAD, and even if it is a completely different device, has been sailing the wind a bit '. As some industry analysts were quick to point out, IPAD errors large enough of them - but many people, almost all with a plaque on Apple to see what that would be strong enough to buy a breach of Las Kindle sales numbers.

In addition to publishing new, sexy hardware, Apple has also fallen to an agreement with some largePublishers can pay what they wanted for e-books - is not available for less on another device - the Kindle in other words. This could put some 'sand in the gears of the policy of Amazon delivery of e-books are $ 9.99 or less. It seems that the price of electronic books crept upward since the beginning of IPAD. It seems a bit 'strange that more competition could increase prices - but notthe same.

It 's a different story with the hardware of an e-book reader in progress, however. 259 Barnes & Noble have lowered the price of its readers Corner $ 199 USD. Amazon has 189 now reduced the price of entry, 2.0000000000 Kindle at $ 259 - a very small number as in 2009 sold for $ 359 when it debuted in February. The price of most Kindle DX format is reduced from 489 million to $ 379, an event that matches the device isfirst upgrade to a higher contrast display and features a new exterior color.

The top of the range Kindle DX is now more than $ 100 less than the initial model of IPAD. Or an Internet connection, the purchase price IPAD IT industry is on the Kindle. Of course, IPAD is an eBook reader that people can not provide a more powerful and versatile to pay - even if battery life is much worse, and a reading less friend "of the screen (which is also responsible for other applications).

It will be interesting to see if this round of price cuts of no more than a knee-jerk reaction from the knee to the development of IPAD scene or marks the beginning of a new pricing strategy. Perhaps companies like Amazon and Barnes & Noble may consider sales of equipment for a number of readers, knowing that their profits by selling e-books are on average slightly higher> The price of life of the device. On the other hand, it is possible that Amazon has to maintain at least one tactic to the new color Kindle arrives on the market later this year (just before Christmas).

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