Kindle to retail at $259 with Amazon’s kind cut

Amazon has cut the price of the Kindle for the third time since its introduction two years ago bringing its retail price down to a more affordable yet still pricey $259. The company is at the same time launching a new international Kindle for $279 to expand the market beyond the US.

With the $40 price cut the Kindle is now 35-per cent lower than its $400 introductory price. However, it still remains a rather expensive device for a reading books, the Kindle edition of which are typically priced $9.99.

But the device does fare better as compared to the similarly equipped Sony e-reader, rather it is quite bargain at the price. When Sony first rolled out its new line of e-readers, the devices appeared to be significantly cheaper than the Amazon Kindle with the addition wireless connectivity and a larger screen the price vaulted to $339.

"With this new Kindle, you can get your books, newspapers or magazines delivered wirelessly whether home or abroad in over 100 countries," Amazon chief executive Jeff Bezos said in a note to customers. "Whether you're in Paris, Mumbai, or Sao Paolo, you can think of a book and be reading it in less than 60 seconds."

The price cut makes the device even more appealing, but the proprietary Kindle book format remains a handicap for Amazon. Sony devices support ePub, an open standard with support for DRM (digital rights management) features and with the dust yet to settle on the format issue users remain reluctant to opt for any device in view of possibility of ending up investing in obsolete technology.

Analysts say the price cut would appeal to those in the e-reader market in the US, but the international edition launch is an even stronger strategic move from Amazon considering a GSM-capable Kindle opens up upwards of 100 countries as potential Kindle outlets.