Can Kobo Reader Keep Up?

Kobo Reader may not be the best e-book reader around, but it is one of the least expensive ones. The device managed to put some early heat on Nook and Kindle with its low price. It took B&N and Amazon a short amount of time to drop their prices, putting the pressure back on Kobo Reader. The device may be cheap, but it simply can’t compete with Nook and Kindle at its current price.

Kobo e-Reader is a decent device. It may not have 3G capability, but it can handle e-books fine. The trouble is, the device was expected to challenge Kindle and Nook with its price. Now that Amazon and B&N are offering their top e-readers for $189 and $199 respectively, Kobo does not seem like a winner all of a sudden. Borders has demonstrated that it is going to compete hard with the top players (with its e-book store and apps). So why not be aggressive with Kobo? Offering a $20 gift certificate with Kobo units is not exactly what we could call an aggressive pricing strategy.

The best way for Borders to go forward is by getting as many people as possible to use Kobo and its platform. Why not do that by getting Kobo Reader in as many hands as possible? A deep discount would give Borders the opportunity to do just that. It may not be profitable in the short-term, but it could work over the long run. If Borders is worried about the short-term results, it is involved in the wrong market.