April 12, 2011
By Stu Woo
Amazon plans to release a less expensive Kindle, but users will be forced to view on screen advertisements. It will cost $114, $25 less than the current version. This is an example of product line extension, as we have talked about in class. Personally, I think this could be very successful as long as the ads don't annoy readers. It appears that ads won't be present while the user is reading, but they will appear on the homepage and screen-saver. Amazon will put their own ads on the Kindle. It will be the same model as the current Kindle. Experts believe people will think the new model is a good trade off. Kindle, a product in its growth stage, has not said how many they have sold. Experts believe the number lies around five million. Will the future have product placement in the books?
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