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Kindle Price Cut Shows iPad's Winning

The decision by Amazon to cut the price of the Kindle DX ebook reader by 22.5 per cent to $379 could well be an indication that the giant online retailer is feeling the heat from the Apple iPad whose current price, $499, was too close to the price of the original DX device at $489.

Companies rarely cut prices on their flagship products when they have the upper hand, price cutting is a strategy that's used, more often than not, when dealing with some significant competition and the iPad is the most formidable of them.

However, make no mistakes, Amazon was never in the business of selling hardware in the first place; the Kindle is, like Google Nexus One, a mere medium to foster the adoption of a new technology, ebooks.

Indeed, the online retailer will be very happy if sales of tablets in general manage to ramp up significantly because it will expand the number of potential ebook customers.

Amazon has been busy increasing the number of platforms on which the Kindle app is available. Excluding the ubiquitous PC platform, the Kindle now runs on the iPhone, the iPad, the Mac, Blackberry and Android but still excludes Symbian and Meego for now.

At the end of the day, Amazon will be more concerned about Apple's iBook & iTunes success rather than that of Apple's hardware range.