Cheaper E-books or E-Readers?

Consumers do not like to pay more than they have to get their hands on e-books and e-book readers. When Kindle was released a few years ago for $399, many assumed that the device was worth it over the long run if Amazon dropped its e-book prices. Amazon did try to sell all of its e-books for $9.99 or less. But some publishers had other ideas. While companies such as Amazon and Apple have struggled to lower e-book prices dramatically, e-reader prices have come down on a consistent basis.

Amazon Kindle is now being offered for $139. It could potentially be offered for free with an e-book subscription (or ad-based) plan. iPad 2 will still be offered for as low as $499, when it starts shipping. Still, people are not just satisfied with these prices. It is true that people pick up e-readers to read at all times more conveniently. But owning an e-book is not the same as having a physical book in your hands. The fact that people can’t sell back their e-books is not exactly encouraging.

E-book readers are getting cheaper and should be free in the near future. Let’s face it. E-book stores can make more people buy their e-books if they provided them with the tools to do so. As cheap as Kindle is, some people still don’t want to pay $139 to get a dedicated e-reader. The iPad was never designed to be a dedicated e-reader anyway.

Not all e-books need to be offered for $0.99. But in a world where publishers keep complaining about piracy, there is no reason for authors not to try more aggressive pricing strategies. Unfortunately, that is easier said than done.


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1 comment

#1Spanish GentlemanMarch 9, 2011, 6:56 pm

Apple struggling to keep ebook prices low? Hardly. They’re so anti-competitive it’s not even funny. Books in the iBooks store are stupidly expensive – in the UK at least they all seem to be full RRP. But then again, iTunes albums are more expensive than buying a CD in my local hmv and ripping it to my iPod myself. Go figure.

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