08-Mar-2011

Declining Kindle Price

In my The future of e-paper article, I referenced Amazon's Kindle as one of many e-paper products available in the market. Here is an interesting chart on the declining price of the Kindle.

Declining Kindle Price

Although it is interesting to observe the declining price, I do not think it will continue to drop in linear fashion to reach $0 by November/2011. It is understandable that competition will continue to drive the Kindle price down. If profit margins are squeezed enough, a free Kindle unit might make sense in order to earn revenue on selling the content for the Kindle. However, that will maintain revenue at the expense of lower profit margins since there is the manufacturing cost of the Kindle to consider.

It is conceivable that the Kindle price will be subsidized by a subscription service arrangement in a manner similar to that used for smartphones and mobility services in general.

Due largely to the ability to access content online, book-less libraries are becoming the trend for universities and the book selling business is in serious decline. As competition continues in the book selling and related e-paper devices business by companies such as Amazon, Barnes & Noble and Sony, it can only mean better prices for the consumer.


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