We all know that high competition results in lower prices. An example of this concept is the recent reduction in the price of Amazon’s Kindle e-book reader due to the introduction of Barnes and Noble’s Nook to the market.

Not only has Amazon reduced the price from $279 to $259 which happens to be the price of Nook but it has also made some useful changes to the latest models of Kindle. Amazon reduced e-book models from three to two for the sake of simplicity. One is with wireless connection that can roam internationally while other is the larger Kindle DX.

nook

Barnes and Nobles is currently taking pre-orders of its new buzzing device and will start shipping it at the end of November.

Amazon is afraid that Nook will be a tough competitor because of several extra features that it offers compared to Kindle. For example, Nook lets you loan e-books to your friends for up to 14 days free of charge. Also, by the time Nook starts shipping, Barnes and Noble will have about 1  million e-books whereas Amazon only has 350,000 e-books. The Nook will also have access to half a million non-copyrighted books that are available on Google Books.

Amazon better start preparing and hopefully the price reduction will keep its sales up.


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