New Amazon Kindle announced: $139 WiFi-only version and $189 3G model available August 27th in the US and UK
Let's be honest — you saw this one coming, didn't you? Today Amazon is introducing a new reading device for e-book aficionados dubbed simply... the Kindle.
Context & Ripple Effects
Amazon had already moved the Kindle downmarket with its 2009 Kindle 2 price cut to $259 and another price reduction in July 2010. That pricing push coincided with Amazon saying Kindle e-book sales had exceeded hardcover sales over the preceding three months, while a Kindle sellout signaled demand pressure.
The new two-tier lineup turns the connectivity choice into Amazon’s main upsell: WiFi entry at $139 and 3G at $189, with availability spanning the US and UK. It arrives as Amazon expands Kindle’s commercial ecosystem, including its Kindle Million Club for authors.
First-order effects
- US and UK readers gain a substantially cheaper Kindle entry point on August 27, while Amazon preserves a $50 premium for always-on 3G connectivity.
- Amazon can address sellout-era demand with two configurations rather than a single Kindle price, giving buyers a clearer trade-off between upfront cost and wireless access.
Second-order effects
- The $139 model lowers the device barrier for Amazon’s e-book store, aligning hardware acquisition with Amazon’s reported shift toward Kindle-book purchases over hardcovers.
- Amazon’s $50 connectivity tier makes network access a paid product distinction, concentrating the Kindle purchase decision on Amazon’s hardware-and-store bundle rather than on reading hardware alone.
Third-order effects
- If Amazon continues pairing lower entry prices with differentiated connectivity, dedicated e-readers are likely to compete less on standalone device margins and more on their ability to pull readers into proprietary book catalogs.
- The Kindle’s move from a $259 model in 2009 to a $139 entry model in 2010 points to a mass-market e-reader strategy in which lower hardware pricing supports digital-book distribution.
The trend: Amazon is using lower Kindle hardware prices and connectivity segmentation to broaden e-reader adoption and reinforce its digital-book marketplace.