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Responding to Barnes & Noble's (BKS -3%) just-announced price reduction on its Nook, Amazon...

Responding to Barnes & Noble's (BKS -3%) just-announced price reduction on its Nook, Amazon (AMZN -2.9%) confirms it is lowering the price of its Kindle e-reader to $189 from $259. (PR)
Comments (3)
  • Jason Tillberg
    , contributor
    Comments (1237) | Send Message
     
    I'll still just go to the library.

     

    AMZNs margins are dear, so they can easily afford such a move.

     

    Investors paying ridiculous multiples for AMZN shares however may not want to see ANY form of reduction in margins as its simply not priced in.

     

    Disclosure: short AMZN
    21 Jun 2010, 03:32 PM Reply Like
  • coloneldebugger
    , contributor
    Comments (890) | Send Message
     
    The question I have here is whether Apple will now feel pricing pressure for their iPad, which you can use for both Amazon and BN ebooks.
    21 Jun 2010, 04:03 PM Reply Like
  • elliotz
    , contributor
    Comments (251) | Send Message
     
    I don't think APPL will feel price pressures. APPL has always competed on its quality or perceived quality by its customers rather than price. I do not think this will effect APPL much because its customers who are in the market for an IPAD will not go out and buy a kindle or the nook just because its 27% cheaper now.
    21 Jun 2010, 04:11 PM Reply Like
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