Why is it not US$ 99 ?

About 10 days ago, Amazon announced a new version of Kindle 3 – the same look, the same specification but US$ 25 cheaper (i.e. the new low price is US$ 114). But there is one catch – you can buy one at this low price as long as you allow Amazon to place “Special Offers” (read “Ad”) on to your Kindle.

When I scanned this news, several questions popped up in my mind …

  1. How this going to work ? If I bought this Kindle and never turn on the WiFi / 3G, how can they download the “Special offers” to my eReader ? So is it mean I can enjoy a new device with low low price without any Ads ?
  2. When will the price slashing stop ? I bought my Kindle 2 over US$ 300 two years ago and now you can get a brand new Kindle 3 for one third of the price.
  3. Why is it not US$ 99 ? I mean the psychological barrier is US$ 100, so why not another 15 dollars cut ? My view is there may be another wave of price cut in near future (say, after summer holiday).
  4. When will the next Kindle (if there is one) be announced ? The current pricing strategy makes me think that a new model will arrive very soon – may be one with color screen ?

I have no good answers … but looks like at this price point, every book lover shall get one.

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Author: Michael Yung

Michael possessed over 30 years of experience in Information Technology with focuses on complex application development, database technologies and IT strategy. He also spent the last 20 years in Internet technology, eCommerce development / operations, web usability, computer security and Public Key Infrastructure technologies.

2 thoughts on “Why is it not US$ 99 ?”

  1. Thanks Michael for your posts on Kindle. I finally got a DX today after reading your flowchart. I read quite a bit of PDFs so I agree DX is the right choice. Many thanks.

    Of course, the unit was placed through your store!

    Like

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