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June 21, 2010

Prices for Kindle, other e-readers dropping fast

kindle How low can you go? Amazon and Barnes & Noble are dropping prices of their e-book readers as new competitors emerge. Amazon slashed the Kindle's price from $259 to $189. Barnes & Noble, meanwhile, cut the nook's price to $199, and introduced a stripped-down model that only offers Wi-Fi Internet access for $149, the Wall Street Journal reported.

We noted earlier this month that the Libre, being sold by Borders, threatened to break out of the pack of e-readers with its low, low price: $119.99. But the market leaders are wisely fighting back. As they assess the economics of  digitization, they may be taking a lesson from companies who make shaving products: Give away the razors for a low price, and make your money on the blades. That's likely to continue as new devices emerge.

Posted by Dave Rosenthal at 5:00 PM | | Comments (0)

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About the blogger
Dave Rosenthal came to The Baltimore Sun as a business reporter in 1987 and now is the Maryland Editor. He reads a wide range of books (but never as many as he'd like), usually alternating between non-fiction and fiction. Some all-time favorites: A Confederacy of Dunces by John Kennedy Toole; Wind, Sand and Stars by Antoine de Saint-Exupery; and anything by Calvin Trillin or John McPhee. He belongs to a book club with a Jewish theme.
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