Should Amazon Cut Prices On Kindle?
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The political season is finally over. I got to admit that I followed this election more so than any other election. While I didn’t agree with the republicans, I did like their theory of cutting taxes to stimulate the economy. But that made me think about Amazon’s strategy with Kindle. Kindle is going for $359, which is not cheap. Many folks complain that $359 is a lot of money for an eBook reader, and they’d rather keep the money and stick with paper books. It really all comes down to this: when will we see the next price cut on Amazon’s part?
If I had to guess, I would say we would see it for the Christmas, this year. I do believe that Amazon needs to have a good quarter to show investors that it’s on the right track. These days the fear is in the air. Everybody thinks eveyrone is going bankrupt. Some investors are pulling back their money, and that is not good for companies such as Amazon. But Amazon should have lowered its production cost by now. I know they are trying to cover for the losses they took initially on Kindle, but the holiday time is not the time to ask for more money.
Amazon Kindle is worth every penny at $359, but folks want to believe that they are getting a bargain for the holiday season? A $60 price drop, which has been rumored for a long time, can make folks believe they are getting a steal. Will it save Amazon’s tough quarter? I can’t say for sure. But cutting price is one of few options Amazon has at this point to get the late adopters on board.
