Amazon Discontinues Kindle – U.S., Drops Kindle Price

Another day, another aggressive move on Amazon’s part. I did predict that Amazon would drop the U.S. version of Kindle 2 sometime soon but did not expect it to be so soon. The company has just discontinued Kindle 2.0 with Sprint. In addition, Kindle International can be purchased for $259. That is going to open a whole lot of issues for Amazon. For starters, there are a lot of people who just bought their new Kindle recently and paid $279 for it. How about people who invested in Kindle 2.0 U.S. just a couple of weeks ago. [As Dave points out, Amazon has the practice of refunding its customers when these sudden price drops happen]. Let’s hope Amazon does replace those recently bought Kindle 2.0 U.S. units as well to avoid any backlash from its customers .

Amazon is clearly feeling the pressure from Nook and all other e-book readers that are popping out of nowhere. There are plenty of competitors that Amazon has to deal with in the e-book market. But Nook is perhaps the first device that betters Amazon Kindle in more than a couple of areas. The device also runs Android OS, which is something that should worry Amazon. Alex Reader is another Android e-book reader that could steal some customers from Amazon. Let’s not forget about Plastic Logic’s QUE either. Amazon is certainly feeling the pressure in the e-book market.

I firmly believe that Amazon dropped the ball by underestimating the level of its competition in the e-book market. Kindle 2.0 is a very good e-book reader, but it can’t hold its own against the new wave of e-book readers that are coming in the near future. Amazon had the opportunity to introduce tiered content subscription plans, a color Kindle DX, and a WiFi Kindle. What we got was an International Kindle which is really useful just for people who travel all around the world.

Will we see Amazon Kindle apps, color screen Kindles, and dual screen Kindles anytime soon? One would hope so. But Amazon seems to have gotten a bit too comfortable with its lead in the e-book reader market. The new e-book readers are not going to compete just for the 2nd place behind Kindle. If Nook can pose a threat to Kindle, so can Apple iPad and Microsoft Courier. Amazon’s price drops can work for only so long. Kindle needs a new design and more features real soon. But don’t expect a new Kindle before 2010.

**Correction: