International Launch And Price Cut For Kindle 2

The selling price of Amazon’s Kindle 2 e-book reader has just been cut by a further forty dollars. This is the second price cut in the eight months since the Kindle 2 was first released. The $ 259 selling price is exactly $ 100 lower than the original launch price.

Also available, for the first time, is an international Kindle 2. This costs an extra $ 20 and customers outside the United States can buy one. Currently, the order has to be placed using the Amazon USA website. The device will be shipped with a power supply suitable for connection into a US wall socket and – depending upon which country you live in – you may be required to pay import duties. However, even with the various shortcomings taken into consideration, it is still a major development which will markedly grow the size of the market accessible by Amazon.

According to Amazon head honcho, Jeff Bezos, increases in both production and sales volumes mean that Amazon is able to pass savings due to economies of scale on to its customers. The Kindle reader is selling well and there is, no doubt, something in what Bezos says.

However, the fact that many of Amazon’s competitors either have new e-book readers ready for imminent launch, or in the development pipeline, is probably also a factor. Companies like iRex, Plastic Logic, Samsung and Apple are all extremely active and are fighting to secure a share of the new – but fast growing – e-book reader market.

Not to mention Sony who, after a period in the doldrums, are currently resurgent. The company has already launched two new readers and has announced that its large format Sony Daily Edition reader will be launched in time for Christmas this year.

Although the current market leader – by some way – Amazon cannot afford to rest on its laurels. And given the significant impact of the Kindle reader family on the development of the e-book reader market to date, there is no reason to suppose that they will.

It will be interesting to see the sales figures for the 2009 Christmas gift season. It seems as if there is finally some genuine competition for the Kindle reader. Prices should fall across the board, which is good for consumers.

The market is developing very rapidly – but there is still a long way to go before it stabilises. Whether Amazon will retain its current dominant position or not remains to be seen.