Amazon cuts price of Kindle
Ebook reader price dropped in United States to see off competition posed by Nook and iPad
Amazon has cut the price of its Kindle ebook reader in the United States from $259 to $189 in response to increasing competition in the ebook space.
Barnes & Noble, which sells the Nook ebook reader, also cut the price of its device recently, from $259 to $199, and introduced a new $149 Wi-Fi only model.
Meanwhile Apple's iPad, with its integrated iBooks reading app, is also thought to be of concern to companies selling dedicated ebook reading devices.
Industry watchers believe we could be on the verge of an ebook price war, as companies struggle to exert their dominance in an increasingly crowded market.
Amazon's decision to makes its Kindle ebook store available on a range of other devices, including the iPhone and iPad, is being viewed by some as crucial to its future success.
Om Malik, a respected technology writer, said he had "banished" his Kindle to the back of the cupboard since buying an iPad.
He said he spent an average of around $10 ever five days on books from Amazon's iPad Kindle store, and, despite trying Apple's own ebook offering, iBookstore, saw little reason to go back.
"It has fewer options, but, more importantly, I can only read those books on the iPad. The books I buy in a Kindle store will work on an Android device, as well as on an iPad, iPhone or Mac.
"This is a big advantage for Amazon, for as more people start living multi-device lifestyles, such cross-platform availability of content will increasingly become a big deal. I like the flexibility of the Kindle app, even if it offers books to me in somewhat of a less attractive format. In other words, Amazon should be thinking about Kindle as a platform that leverages other people's hardware."
According to Apple, iPad users downloaded more than five million books from Apple's iBookstore in the first 65 days the iPad was on sale.
Steve Jobs, Apple's chief executive, revealed at last month's Worldwide Developers Conference in San Francisco that five out of six of the largest publishers said that iBooks sales accounted for around 22pc of their overall ebook revenue.