At the time the Kindle 3 reader was released in August 2010, the Wi-Fi only reader cost $139. It is still the same price today. There has been one further cheaper unit that has come out, the Wi-Fi Special Offers unit. This model costs $114. With the current development of a new Amazon hand held reader, users are wondering about the Kindle 4 price when it comes out. Will it be as cheap as the current models that are on sale? Ideally they will in fact be cheaper. However, with the inclusion of a color screen, what are the chances of that? There is the real possibility that Kindle prices will in fact rise.
Since they first came out in 2007, the prices of these hand held readers has fallen. This is not just for the 6″ units but for the Kindle DX as well. The price will certainly have a bearing on the number of 2nd and 3rd generation Kindle users who decide to upgrade to the latest version. In fact, it will also be of major significance with regards to how many non-Kindle users purchase it as well.
Amazon are aiming to be the number one hand held reader producer with the best system. As far as dedicated ebook readers go, the Kindle network is fantastic. The current prices are reasonable and the number of titles available is fantastic. It may well make business sense for Amazon to sell the handsets for the Kindle 4 for pretty much what it costs them to manufacture. The more users that they can get started using Kindle, the more loyal customers they will have.
There may well be money to be made on the sale of Kindle handsets, but is it really worth trying to make a profit at the risk of turning other customers off the product? Surely there will be more money to be made by getting people using Kindles even if the units themselves don’t generate huge profits for Amazon. The lower the price of the Kindle 4, the better for both consumers and Amazon alike.