Amazon Launches its New Ad-Supported Kindle

Amazon announced that its new ad-supported Kindle will launch April 27, nearly a week earlier than originally expected. The e-reader — dubbed Kindle with Special Offers — will ship for $114 through Amazon, Target and Best Buy (that’s $25 less than the Wi-Fi only version).

According to Amazon, the cost reduction is a result of the device being subsidized by advertising. Early sponsors include General Motors, Proctor & Gamble and Visa. “Special offers” will be made available directly to the new Kindle related to Amazon.com gift cards, audible books and products from the various Amazon stores.

The latest Kindle is 21 percent smaller and 17 percent lighter than its predecessor, but features the same 6-inch reading area. The company claims the device features the “most advanced E Ink Pearl display technology” and touts 50 percent improved screen contrast with crisper, darker fonts.

It’s worth noting that the ad-supported model is getting more press than the Kindle’s new specs. We’ve seen similar approaches with other devices and services in the past, with mixed results. It will be interesting to see how consumers respond.

10 Comments

  1. Interesting idea but is a $25 drop in price in exchange for ads meaningful?

  2. Interesting idea but is a $25 drop in price in exchange for ads meaningful?

  3. I think $25 simply isn’t enough of a discount for many consumers. I think in order for eink devices to gain mass popularity they need to be priced under $100.

  4. I think $25 simply isn’t enough of a discount for many consumers. I think in order for eink devices to gain mass popularity they need to be priced under $100.

  5. sorry, I don’t mean to be simple, but what means “Wi-Fi only version”?

  6. sorry, I don’t mean to be simple, but what means “Wi-Fi only version”?

  7. Benn: The $189 “Kindle 3G+Wi-Fi” and $379 “Kindle DX” offer 3G and global wireless coverage, while the basic $139 “Kindle Wi-Fi” does not…

  8. Benn: The $189 “Kindle 3G+Wi-Fi” and $379 “Kindle DX” offer 3G and global wireless coverage, while the basic $139 “Kindle Wi-Fi” does not…

  9. In response to the submitter’s question: I would rather pay the incremental cost and not deal with advertisers.

  10. In response to the submitter’s question: I would rather pay the incremental cost and not deal with advertisers.

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