The High Cost of a Cheap Kindle

The High Cost of a Cheap Kindle - The High Cost of Amazon's...

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The High Cost of Amazon's Cheap Kindle Article – Wall Street Journal By MARTIN PEERS There must be something in the water at Amazon.com , given its commitment to price- cutting whatever the short-term pain. The retailer's decision to introduce a new, cheaper Kindle, just weeks after slashing the price of the existing version of the device, confirms that once again Amazon is taking the long view in trying to boost its share of a market—this time, e-books. Just a week ago, Amazon surprised Wall Street with lower-than-expected second-quarter operating margins, the result of increased investment in its businesses, including marketing costs for the Kindle. At $139, the new device is about a third the price of the original Kindle and nearly half what the second iteration was selling for just five weeks ago. That aggressive new price should entice more people to take the e-reading plunge. That doesn't mean the Kindle will become "mass market," as Amazon suggests; an occasional book reader is
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This note was uploaded on 03/12/2011 for the course MKTG 3650 taught by Professor Thompson during the Spring '08 term at North Texas.

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The High Cost of a Cheap Kindle - The High Cost of Amazon's...

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