Amazon.com Drops The Price of the Kindle 2 To $299
Amazon.com has decided to cut the price of the Kindle from $359 to $299. The Kindle 2 was introduced back in February. Amazon spokesman Andrew Herdener said that the company is dropping the price because they are decreasing costs to manufacture the device. However the Kindle DX will remain at a price of $489.
The success of the Kindle will add about $310 million in revenue and $70 million to the bottom line for Amazon.com. This will give the company a rise in $2 billion in revenue and $560 million in profit by 2012 according to Sandeep Aggarwal, a research analyst at Collins Stewart.
Currently there are about 300,000 books available for download on the Kindle. When the first generation Kindle was introduced, there was about 90,000 books available.
[via NYT]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry