Amazon.com unveiled a new design for its large-screen Kindle on Thursday and cut the device’s price by more than 20 percent, positioning the e-reader to compete more effectively against Apple’s iPad.
In a statement, Seattle-based Amazon announced the new Kindle DX, which the company said boasts a 50 percent improvement in its E-Ink display for a sharper rendering of text and images. In another refinement, it’s been encased in a graphite casing, making it similar in appearance to the iPad.
Amazon cut the price of the device to $379 from $489 — though it still remains one of the most expensive e-readers on the market.
“On the pricing front, it appears that Amazon has woken up to the fact that Kindle in its current form needs a significant price advantage over tablets in order to continue driving demand,” said analyst Colin Sebastian of Lazard Capital Markets in an interview.
Amazon said the new Kindle DX will be available for shipping by July 7.
The move comes just a week after Amazon slashed the price of its standard Kindle model to $189 from $259 — a 27 percent reduction.
While Amazon has not disclosed sales data for its Kindle business, analysts believe the devices have come under pressure from the iPad since Apple first launched the tablet device in April.
The least expensive iPad sells for $499 but offers users the ability to surf the web, watch videos, play music and send emails through a high-resolution, full-color LCD touch screen.
There remains room in the market for dedicated e-reader devices, analysts believe, but they say the devices will need a significant price differential from the iPad to grab the attention of potential buyers.
To read more, go to MarketWatch.com.