"How can Amazon counter the iPad allure? Some suggest the Seattle, Wa.-based online bookseller forget going toe-to-toe with Apple on features, but concentrate on another eternal factor attracting consumers: price. If the Kindle’s price dropped to $149, for instance, consumers might overlook the iPad’s sexiness and all the media hype. However, at $259, consumers will consider the price only a short step from buying an iPad."
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Report: iPad Already Viewed as Kindle Replacement | Cult of Mac

As someone who would work for Amazon, I would advise Amazon not to go the price war way. That’s not the way the game should be played. Look for the perfect reading experience and perfect it. 

Apple’s iPad is certainly heading the generalist way - it’s like a PC that can surf and can play games and can read books. However, Amazon has the opportunity to create the best reading experience for people - be it eInk, the book eco system, open formats for people to take their reading everywhere, cloud opportunities, what have you. It’s NOT PRICE!! 

The industry is going through a transformation. Companies have unusual leverages to change the industry. Apple and Amazon and others should ensure that the industry is only adding value, improving the user experience and not wage a price war. That’s the sucky way to go about it. 

  1. Date Posted Icon 5th April 2010