Amazon ups the ante in e-reader war

>> Friday, July 30, 2010

SAN FRANCISCO



THE chief executive of Amazon. com has cut prices and added features to the Kindle to defend it against a threat from Apple in the fast-growing market for electronic readers.

Mr Jeff Bezos introduced two new versions of the device yesterday, including a US$139 (S$190) model that works with Wi-Fi.

A second version, with 3G mobile technology as well as Wi-Fi to download books, costs US$189.

Mr Bezos said that focusing on features that make it easier to download and read books will help distinguish its e-reader from Apple’s multi-purpose iPad.

The Kindle is the centrepiece of Amazon.com’s strategy to capitalise on growing consumer interest in digital books.

By offering best-selling e-books for US$9.99 that can be read only on the Kindle or its software, Amazon.com is seeking to lock in consumers while it is still the market leader.

“We’re trying to build something that’s great for long-form reading, something you’d use if you want to sit down and read for two hours,” Mr Bezos said in an interview.

He added: “Our mission on the device side of the business is to use the latest technology to make the very best purpose-built reading device. We think that’s a mass product.”

The latest Kindles are thinner and lighter than previous versions and feature faster
page turns and sharper resolution.

They are also designed for easier reading in sunlight and have batteries that will last for a month on a single charge – two weeks longer than those for a previous model. The devices will ship on Aug 27. A notice on the company’s website said that a Kindle model costing US$189 is temporarily out of stock.

Mr Bezos said Kindle sales began accelerating when the price was cut by 27 per cent to US$189 last month. Offering a Kindle for US$50 below that price will spur adoption even more, he said.

BLOOMBERG


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