Thursday, July 1, 2010

Amazon is cutting kindle price again

Amazon is now cutting the price for Kindle DX, After cutting the price of kindle last week to react on Barnes and Nobles price reduction for Nook.
Kindle DX will be priced at $379 down from $489 to have a bigger difference to the iPad entry level model ($499).
Amazon started as an online book selling company and should concentrate on this. Kindle does not sell as fast and good as the iPad and Amazon would do good in concentrating to sell books instead of book reading devices. It is hard for Amazon to compete with B&N and Apple.
B&N is the biggest bookstore chain, which can much easier distribute their Nook than Amazon. Consumers like to test before buying especially when there are more and more similar devices on the market. Apple has a much more flexible device by allowing internet serving, installing application and offering color touch screen.
Of course Amazon is already recognizing this. They offer their amazon reader software for androids, iphone and ipads. And this should be their focus. Get everybody the ability to read books from amazon on any device the people want. In my opinion this is the only way for amazon to be a global player of e-books. The kindle will never go away but it will not play a big role anymore with so much different devices to choose one.
The bulk revenue for electronic books should come for Amazon through their book distribution and not by selling the hardware vehicle to read books.
Production and development costs are high and expensive in distribution.
E-books is the future, if not for. Amazon but then for the company who will concentrate on virtual goods, like e-books, games, software etc. Virtual goods don't require big warehouses, are easy to distribute and can be modified or corrected in a short term of period if necessary. New releases for Hardcopy books or CD pressed games can not be done fast and would take up to a year till the consumer would have a newer corrected version.
Amazon need to be careful not to loose their business to B&N, which get more and more active and aggressive in online book sales. Amazon will lose the race if they keep working on hardware instead of concentrating on their core business.

- Posted using My iPad

Location:W Laurel St,Tampa,United States

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