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Demand Outstrips Supply For The Upgraded Amazon Kindle Reader


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Currently, Amazon is having a busy time of it. They have just announced the upgrade of their tremendously successful Kindle 2.0 and Kindle DX readers and pre-order rates are extremely high right now. Stock levels of the third generation 6" Kindle are depleted and consumers are now pre-ordering to get their Kindle shipped, on a first-come-first-served basis, within the next four to five weeks.

The latest upgrade includes a display with higher contrast, more fonts, twice as much storage capacity, faster page turns and color choice of white or graphite . The 6" display version has had its overall dimensions reduced by 21% and is 15% lighter, at 8.7 oz. Amazon has also released an entry level Wi-Fi only model of the 6" display Kindle for customers who do not have need of a 3G connection.

All of this is accompanied by a price drop. The 6" Kindle version Wi-Fi only model retails at $ 139, with the 3G plus Wi-Fi model on sale for $ 189. The large format Kindle DX model is now available for $ 379. These represent significant price reductions over the Kindle 2.0 launch $ 359 price and the recent DX model price of $ 489.

A lot has been made of the potential impact of the Apple iPad on Kindle reader sales figures. It seems likely that the launch of the Apple iPad has prompted, or at least hastened, the latest round of e-book reader price reductions. However, the above prices are well below even the entry level iPad price and, for many potential customers, the fact that 3G is available with no monthly fee will be an attractive aspect of the Kindle pricing plan.

Over and above the various upgrades to the hardware and the reduced prices, a dedicated UK Kindle store will be opened. Consumers in the UK will no longer require to have their Kindles shipped across the Atlantic. The UK Kindle store opens in August 2010 and will, initially, have approximately 400,000 Kindle books on offer. It seems reasonable to assume that other Amazon websites will soon have their own Kindle stores and that customers will be able to have their Kindles supplied locally.

The recent price drop in the e-book reader market may be an indication that the market, although still relatively young, is maturing. Lower hardware prices will shift the emphasis from hardware sales towards the sale of the e-books themselves. Amazon, who have an interest in the sales of both hardware and books may be better placed than companies who are primarily concerned with hardware manufacture and sales. Whatever the future brings, and it seems likely that the future of reading will have a strong digital element, Amazon seem likely to remain a very influential player in the development of the market.
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