Quote:
Originally Posted by Andrew H.
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.
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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.