Hours after Amazon announced the Kindle 2, consumers posting their reactions to the Web weren't only talking about the thin form, the longer battery life, or the new dictionary lookup. Many were complaining about the same old price.
"359.00??" asked Buckyg66, commenting on a TechSpot article. "Don't get me wrong, I'd love to have one, but the price needs to be relative to other portable devices. [The Kindle] has one function and costs as much as Smart Phone?"
After reading a MarketWatch article, GunwallsArchibald added that "It just doesn't make economic sense to spend this kind of money to use proprietary hardware to read books." After voicing a preference for a program that would allow "consumers to purchase electronic books for viewing on existing devices," he admitted that "It's a kool [sic] gadget, don't get me wrong -- just not practical for the average book consumer."
Some saw the price as reasonable -- or at least unavoidable. "I'm sure some market and economic research was done to arrive at the price," wrote Bandigerbolls, commenting on the same article. "Obviously, the 'got to have it' group was willing to pay well over $300, and the 'I'd buy it if it were cheaper' group would only pay a much, much lower price, and Amazon determined that it couldn't produce them in the quantities needed to target the broader consumer base."
Another price-related concern: The price of downloaded books. Even before the Kindle 2 was launched, an Amazon user named C. S. Stein started an Amazon.com forum discussion titled Boycott anything over $9.99. After noting that the Kindle Store was pricing a Wally Lamb book at $16, Stein called it "important that Amazon and the publishers realize that they will not be selling books that are over $10." (Amazon brags on its Kindle retail page that it sells New York Times bestsSellers and new releases for $9.99.) "Mom of 2" added that "the $9.99 pricing was a big selling point to me and justified me spending 400 bucks on what is essentially a luxury item. As soon as Amazon sees that Kindle users are going to pay more, the $9.99 price point will be completely gone."
Comments
The Kindle's price point is way too high. I can read most books for free, if I check them out at the library. I can also already download a lot of books for free, via the library in print or recorded form. Continuing the library theme, Amazon should donate or significantly reduce the cost of perhaps two Kindles so library patrons could check out how they work. When the price of a Kindle is about $50 to $75 then I might think that the pricepoint could be justified. But at this point, even if you can afford a Kindle and it can store thousands of books, you can still only read one at a time on the airplane. The kind of people who might need quick access to lots of books very quickly are not necessarily those who have $350 as spare change.
@Jodie, library is funded by appropriated tax payer money. Amazon is a business that is out to make a profit. It has every right to name their price. Supply/demand and competition normally puts product price in check. There is not a single competition that come close in this product class. Remember that Amazon is soaking in all the wireless cost regardless of the amount of usage by the Kindle user. Given Kindle 1.0 unconfirmed report, Amazon may only have around 500K units manufactured. So, Amazon might be doing the same for Kindle 2.0 by controlling the supply to meet the demands and price points.
Supply and demand have not kept prices in check for over two decades. Competition no longer exists in any viable form as market shares are split between a few mega corporations. These corporations meet quarterly to discuss, among other things, pricing of products. This was once known as price fixing, but today it is largely ignored. Also, not all libraries are funded by tax dollars, and even public libraries receive considerable donations from private sources, but that isn't even the point Jodie is making. If people can read the books for free, then many will be unwilling to pay the price for the Kindle. Second hand paperback stores typically have a new bestseller available within days of its release for one third the cost. These are just the low tech alternatives to the Kindle. By the way, it is not the first e-reader ever made, but simply the best known. The smart move for Amazon is to lower the cost of the Kindle considerably, and then sell the books for normal or only slightly reduced prices. Otherwise, Amazon will likely lose the Kindle to Apps available for any PC, Laptop, or even for your iPhone. Once 4G becomes mainstream, these Apps will likely be bundled with any new electronic device with 4G capability. Most Laptops will then come with 4G modems, and downloading any content you desire from any location or even on the move will be easy. Then the Kindle will go the way of the DoDo. Amazon is wisely trying to cash in before people realize it is a novelty item.
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