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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.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.