Amazon launched its Kindle 2 e-book reader in February 2009. Initially, the price for the new Kindle 2 was $359 in the beginning but now Amazon has cut $60 and brought the price down to $299. News reports are saying that this shift in price is the result of low manufacturing cost and increase in volume. It is not just any cheap promotion trick. On the other hand, tech analysts are saying that this price cut reveals the major weakness of Kindle 2 that it is only an e-book reader and people are not ready to pay more than $300 in this tough economic times where they can get an iPhone which can also work as an e-book reader and do many other things. Five months after the launch of Amazon Kindle 2 comes this price cut. However, the Amazon Kindle DX, which was unveiled in May, still costs $489.
Currently, there are several other e-book readers in the market such as Sony Digital Reader PRS-700 which costs $350 and the Sony Digital Reader PRS-505 ($280). There also low priced e-book readers like the Interead Cool-er Books ($249) and the Astak EZ Reader ($270). This price cut would make the Kindle 2 e-book reader a competitive device but it would not give the Kindle 2 any major advantage. If Amazon really wants go to the top they have to offer a device that can do more than just reading at a reasonable price.
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