Amazon headed to $150 Kindles? |
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Amazon headed to $150 Kindles?
Amazon.com's discounting strategy with Kindle has come under pressure as publishers emboldened by Apple have demanded the online retailer raise prices on electronic books. But what if Amazon takes its discounting strategy to the Kindle itself?
Freescale Semiconductor, which supplies technology to many of today's electronic readers, says it's coming out with a new chip that "will help drive down the price of the devices to less than $150 this year," Bloomberg reports. Amazon, a Freescale customer, hasn't revealed details about its next e-reader. But a $150 Kindle could open up a whole new market for Amazon. Right now Kindles sell for $259 (standard version) and $489 (large screen).
Cheap Kindles could also help Amazon stand out from Apple's new multi-function iPad, which will sell for between $499 and $699.
Freescale, in a press release, says the new chip "provides twice the rendering performance of Freescale’s previous eReader processors, resulting in faster page turns and snappy responsiveness for consumers. The increased processing capability also gives manufacturers the additional performance to add features like advanced touch solutions and the ability to run other value-added applications."
Last fall, Freescale formed a partnership with E Ink, a supplier of display technology to Kindle and other readers.
Update: In a blog post today, Freescale distanced itself from talk of $150 Kindles or other e-readers:
To clarify: the i.MX508 processor is designed to reduce eReader costs for our customers and their end users. However, Freescale has not/will not speculate as to which customers might incorporate the i.MX508 into future eReader designs; has not/will not speculate as to the end prices of any specific eReader products based on i.MX508; and has not/will not speculate as to when any specific manufacturer might deliver eReaders to market based on our new i.MX508 processor.
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