In recent times Amazon is facing increasing competition in the ereader and ebook market. After B&N released Nook, and lately Apple’s iPad and its own iBook store, this competition has reached a height. In no way iPad is comparable to Kindle, but the wide scale adoption of iPad given the fact that that people are hesitated to carry multiple devices for multiple purposes when they can get a lot in one device like iPad, has created a slow down of Kindle sales. Borders is also coming in the market with Kobo reader which is not as good as Kindle in any means except the price. At a $150 price tag, Kobo is going to put further pressure on Amazon. iPad is not ebook-centric while Kindle is. And Amazon has already put a lot of unique features in Kindle, specially with recent software updates kindle owners got folder/collection, PDF zoom-pan, facebook /twitter integration. However, all these things can’t save or can’t give kindle necessary dominance in the market unless it’s affordable. iPad is a high priced device, but it’s not a dedicated ebook device. People don’t buy iPad to read books, but that’s an added bonus to them when it comes to decide to buy a Kindle or not at $259. None of the ereaders are competing with iPad, rather most ebook sellers with their ebook stores have their application on iPhone and iPad.
Today there is also some report that B&N is also going to release a wifi-only Nook at a price of $149. This is definitely came in response to B&N’s adoption of Kobo reader which is also available for pre-order from Borders. Amazon can release a wifi-only Kindle keeping all other features, and sell it close to $149. Secondly, Nook is U.S. only still; but Amazon has how global reach. However, in some countries Amazon couldn’t reach a 3G deal with local cellular carriers. A wifi-only Kindle break this barrier. And Kindle can really be a global ereader. Third, the cost Amazon bears with free 3G services (this cost will go up with recent Facebook/Twitter services) can be reduced, on average, by transferring the data cost on the consumers through their own wifi usages. There can be always a 3G Kindle with higher price tag. Amazon needs to consider affordability issue as well as competition in the market. That’s the only way to gain control in the market.
There are speculations that a new Kindle will be released in August. It can be even earlier than that. And a wifi-only seems to me a high possibility.
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