In the last blog post here, i wondered what accounted for the price differential for the same titles of in e-book on Amazon. However. slightly related to that is the fact that the price for e-readers is rushing downwards very first. As stated here, Amazon has introduced two new Kindle e-book readers at much lower prices. One is a Wi-Fi enabled e-book reader that goes for US$ 139 and therefore is the lowest priced of the main e-book readers.
While I do not understand how far the price war stated here will continue, I am sure of two things. first, it is clear to me that the e-book readers are becoming increasingly handy and are about to become regular electronic gadgets for many people. second and most important is the fact that Amazon's innovation has ensured that most of the value is appropriated by users of the devices. As is evident, today's cheapest Kindle is available for half the price charged a year ago and carries up to 2000 more e-books. And even the second device being launched is the same price as the Kindle 2 but with capacity for 2000 more books. That is a typical trajectory for electronic and new technology devices. may the price war continue.
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