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Old 10-15-2012, 04:51 PM   #18
spellbanisher
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Posts: 826
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Join Date: Sep 2010
Location: Bay Area
Device: kindle keyboard, kindle fire hd, S4, Nook hd+
Quote:
Originally Posted by Andrew H. View Post
I think that's exactly right. People knew that Apple was making a tablet, but most assumed it was going to cost $1,000 and run a full computer OS; most people were caught flat-footed when it's price was announced at $499.

I think Amazon's response was really amazing - the iPad came out in April; by August, Amazon was shipping the K3, which was about $100 cheaper than the K2, had a pearl screen, and a few other improvements. Amazon's main message was: this does not compete with the iPad: it is focused entirely on reading; it's smaller, lighter, has much better battery power, a better screen, etc. It's just astonishing to me how fast they moved (and all against the backdrop of Agency pricing being introduced and people predicting that Apple would own 90% of the e-book market).


There probably ought to be a business school case study on Amazon's response to the iPad, if there isn't already...

Unfortunately, this didn't leave much room for the DX.
In terms of just the pricing, Amazon was responding more to Barnes and Noble than to Apple. The K2 international was $259. Then when Barnes and Noble released their ereader at $199 Amazon lowered the price of the K2 international to $189. Then when Barnes and Noble released the Nook Wifi only at $149, Amazon released the wifi only version of the Kindle Keyboard at $139 two months later.
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