Amazon.com has followed the lead of rival Barnes & Noble and slashed the price of its Kindle, as the e-reader makers respond to the threat from Apple’s iPad.
Amazon announced a $70 price cut to $189 hours after US book retailer Barnes & Noble lowered the price on its own 3G compatible Nook to $199. Both had cost $259. Barnes & Noble also introduced a new Wi-Fi-only version of the Nook for $149.
Apple’s iPad, launched in April, can also function as an e-reader. It sold more than two million units in its first 60 days and its own e-bookstore has quickly won market share.
In addition to the iPad, the Nook and Kindle also compete with Sony’s Reader device. Industry experts and rivals say the field will get even busier, with more e-readers expected by year-end.
While analyst Goldman Sachs forecast US eBook sales would jump 47% by 2015, it also predicted that Apple’s share of the e-book market would jump to 33% in 2015 from 10% this year, while Amazon’s market share would plummet to 28% from 50%. Barnes & Noble is expected to snag 15% of e-book sales in five years, up from 5% in 2010.
Some analysts say dedicated e-readers such as Nook and Kindle are appealing because they consume less power, are easier to read on, and weigh less.
Charles Wolf, an analyst with Needham and Co, said e-readers – despite being “primitive” when compared with the likes of the iPad – will keep a core audience.
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