An Ad-Supported Kindle

April 11th, 2011

Amazon will sell an ad-supported Kindle for $114, $25 less than the ad-free WiFi Kindle.

Bizarre; $114 is an odd price to choose and $25 isn’t much of a price reduction for looking at ads every day on a device whose entire point is to be a quiet, distraction-free way to read books.

The only thing I can figure is this is a half-hearted experiment on Amazon’s part—an experiment with a lower price-point for the Kindle and an experiment with an ad-supported model. Perhaps the WiFi-only model’s margins are already too thin (or non-existent) so they couldn’t justify cutting the ad-supported model’s price down to $99.