Kindle 2 goes to $259, International GSM version coming October 19
This just in: the Kindle 2 is falling from $299 to $259 and they will be selling an international version with built-in AT&T SIM card for $279 on October 19. Quoth the suits: … The new international model will be available for sale in 100 countries.
Context & Ripple Effects
An earlier report had pointed to a second-generation Kindle arriving around October 2008. Amazon is pairing a lower U.S. price with a distinct GSM model rather than treating wireless access as a domestic-only feature.
The international edition uses an AT&T SIM and is slated for sale in 100 countries, making the carrier part of Amazon’s distribution path for the device’s wireless service.
First-order effects
- Amazon lowers the Kindle 2’s price by $40 to $259, reducing the entry cost for prospective U.S. buyers.
- Buyers in 100 countries gain an October 19 option for a $279 Kindle 2 with built-in AT&T GSM connectivity.
Second-order effects
- AT&T gains a device relationship that extends its network role beyond phones, while Amazon takes responsibility for selling a wireless reader across multiple national markets.
- The $20 premium on the international model establishes a separate price tier for embedded global connectivity, distinguishing it from the newly reduced domestic Kindle 2.
Third-order effects
- If Amazon can maintain the same wireless reading experience across its announced markets, e-readers will compete increasingly on international service reach as well as hardware price.
- Carrier partnerships become a practical gatekeeper for connected consumer devices seeking cross-border distribution, since network access must be arranged alongside retail availability.
The trend: Connected consumer devices are moving from country-specific launches toward bundled international wireless service, with carriers supplying the network layer behind a single retail product.