The e-reader price wars is on. Amazon has cut the price of its Kindle e-book reader to $190 from $260 earlier. Amazon’s move comes in response to Barnes & Noble’s price cut on the Nook earlier Monday.
The Kindle will still be slightly more expensive than the basic version of the Nook. A Wi-Fi only version of the Nook is now available for $150, while a 3G model will cost $200.
With the latest round of price wars, the distinction between e-readers and tablets is also becoming clear. Tablets and E Ink-based reading devices are likely to co-exist by targeting different groups of consumers based on their purchasing power, the extent of interactivity they need and their reading patterns.
That means two sets of products: Tablets with color displays and lots of features that cost $400 or more, and inexpensive black-and-white E Ink-powered e-readers that will soon be available for $150 or less.
Despite the launch of tablets such as Apple’s iPad, e-book readers continue to be popular among consumers. About seven million e-readers will be sold this year, estimates Forrester. A recent poll by consumer electronics search website Retrevo showed 45 percent of casual readers–those who read one book every few months–say they plan to buy an iPad now instead of an e-reader. But among avid readers–those who read more than five books a month–only 14 percent say they will go for an iPad over an e-reader.
“In other words Apple will still attract many e-reader buyers but Kindle owners might buy more books,” says Retrevo in its blog post. The web site polled 1000 people through an independent panel.
That’s good news for Amazon and Barnes & Noble who are betting on sales of more digital books. E-readers such as Kindle and Nook will help them in that goal.
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Photo: Amazon’s first generation Kindle (Brian Vallelunga/Flickr)
