Amazon Introduces New Kindle DX, Drops Price

When Amazon (AMZN) dropped the price of its Kindle e-reader to $189, starting an under-$200 price war with its competitor Barnes & Noble (BKS) and their Nook, many puzzled over the huge price differential between the 6-inch Kindle and the nearly 10-inch Kindle DX, which was still retailing at $489.

Now the largest online retailer has answered such speculation in a significant way. Today the company announced a new version of the Kindle DX now priced at $379. Amazon touts the new model's graphite enclosure and an e-Ink display with 50% better contrast and darker fonts. It's available for pre-order now and is expected to start shipping on July 7.

The $379 price also separates the Kindle DX more significantly from the iPad (AAPL), the 3-million-plus selling tablet device that is priced at $499. But it isn't enough to tempt more buyers to try a device that hasn't really improved much beyond the original version, and whose primary market -- higher education and the newspaper and magazine business -- has resoundingly ignored or rejected it? Amazon had to do something with its larger-sized model, but this feels much more like a token announcement for a device that looks like it will be left in the dust.

What should attract more consumers is the 6-inch Kindle on sale at Woot.com for just $149.99. (Update: Woot sold out of its entire stock of 5,000 Kindles at 9:20 EDT.) As Endgadget points out, this price drop is no doubt helped by the fact that Amazon just bought the deal-a-day company.

Read Full Story

Markets

DJIA 20,937.91 43.08 0.21%
NASDAQ 6,138.71 5.09 0.08%
S&P 500 2,398.42 4.40 0.18%
NIKKEI 225 19,742.98 129.70 0.66%
HANG SENG 25,428.50 25.35 0.10%
DAX 12,646.55 -12.60 -0.10%
USD (per EUR) 1.12 0.00 0.09%
USD (per CHF) 0.97 0.00 -0.17%
JPY (per USD) 111.84 -0.12 -0.11%
GBP (per USD) 1.30 0.00 0.28%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.