Will Amazon Drop Kindle Price To £99?

It is interesting to note that Amazon has announced the arrival of the brand new Kindle ebook readers more than one month before the devices actually ship and that the third generation actually costs less than the previous one.

Why announce a new product, a refresh of your best selling item, only to ship it one month later? Well, it is likely that Amazon is attempting to prevent existing and potential customers from jumping ship to competitors and the iPad.

And the fact that they decided to drop the price significantly is a clear indication of how they intend to tackle the combined threats of expensive Apple tablets, cheap Android devices and polyvalent large screen devices like the Streak.

Amazon will go cheaper, it is not a matter of whether, it is more a matter of when. We expect Amazon to offer £10 Amazon vouchers at some point in time which will drop the effective price of the Kindle to £99, a psychological price barrier for many of us.

The online retailer will almost certainly start selling the Kindle locally in other markets as it tries to expand its user base. After all, Amazon is present in most European countries and the 3G version works in over 100 countries worldwide.

Ultimately, Jeff Bezos, Amazon's CEO, wants to make every book (and magazine) ever written, in any language, available in under 60 seconds anywhere in the world.