This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

E-Reader Price War: How Low Can It Go?

Amazon's Kindle

Amazon's (AMZN - Get Report) Kindle was one of the first e-readers to catch on in the market back in 2007. Spearheading the e-reader trend gave Amazon some pricing power, but as new devices roll out it has been forced to play the pricing game.

Only hours after Barnes & Noble slashed the price on its Nook, Amazon said it would reduce the price of the Kindle by $70 to $189. Then at the end of July, Amazon once again cut the price on its entry-level Kindle, introducing a new basic Wi-Fi-only model for just $139, which at the time made it the cheapest e-reader among major brands. Amazon also offers the Kindle DX for $379 from original price of $489.

In comparison, when the first Kindle debuted in 2007, it was priced at $399, and by last year dropped 35% to $259.

Amazon continues to remain mum on exactly how many e-readers it has sold, only saying it is in the millions. On Monday, the company said sales of its latest generation of Kindles has already outpaced total Kindle sales in the fourth quarter last year.

Analysts expect Amazon to sell between 5 million and 6 million units of the Kindle this year.

Amazon also revealed in its second quarter that sales of e-books outpaced that of hardcovers for the first time.

Forrester Research says Kindle holds about 60% of the U.S. e-reader market share. It also touts the largest e-book store.

In an effort to expand its reach, Amazon began selling the Kindle in Target (TGT) to reach a broader audience, and on Aug. 31 said Staples (SPLS) will also carry the device, and Best Buy (BBY) will stock Kindle on its shelves for the holiday season.

Amazon has also developed a Kindle application for the Droid, leaving some questioning if shoppers will purchase the device if they can get it on their mobile device.
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DELL $0.00 0.00%
AAPL $94.99 0.00%
AMZN $482.07 0.00%
BKS $8.09 0.00%
SNE $20.75 0.00%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs