Amazon, although it is in a tug-of-war with Apple for the hearts and minds of publishers, may have a more immediate concern when it comes to other e-book rivals, such as Barnes & Noble and Borders: pricing. While Apple has staked-out the higher-end, the makers of the Nook and Kobe e-readers are rushing toward the lower-end, leaving the Internet retailer in a lonely position. However, Amazon could lower its Kindle’s $259 price tag very soon, one analyst suggests.
The Kindle could drop below $200 “before the end of summer,” according to Citigroup analyst Mark Mahaney. In May, brick-and-mortar bookseller Borders introduced the $149 Kobe e-reader, joining competition from Barnes & Noble’s Nook. The Nook in March forced Amazon to also find a retail partner, Target, to get the Kindle on the radar of non-Internet shoppers. Possibly forcing Amazon’s hand was a DigiTimes report that the Nook had captured more than half of the U.S. e-reader market.