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The Kindle 4 is still in stock. I think Amazon plans on keeping that model without making any changes to it and will probably drop the price; possibly to $49 for the ad supported model.
It's a great bare bones ereader; and for its purpose, doesn't need improvement. A price reduction to $49 could be that "gotta get one now" moment for those who don't have an ereader yet.
That price point isn't unreasonable either. Walmart has already had the K4 on sale twice now for $49 ($79 + free $30 gift card); and Amazon recently had it on sale for $47.40 ($79 - 40% when using Amazon Visa Card).
Also, Amazon is pushing Amazon Prime again on their home page. So a promo tying in a Prime membership with a subsidized Kindle is always a possibility. Although they haven't done Prime promos before, they have done it with Audible. Sign up for a one year AudibleListener Gold plan and get $100 off select devices.
Prime and a Kindle is a great way to get people into Amazon's ecosystem.
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