When Amazon decided to launch their popular Ebook reader: ‘the Kindle’ , with Ad-support for $25 less than its normal price of $139 , many people were sceptical about this. They felt that $25 was not incentive enough to switch to an advertisement supported model. However, the proof is in the pudding that Amazon’s gamble paid off. While Amazon does not usually give out data on number of devices sold, but in their quarterly report released last week, they have indicated that the Kindle with Special Offers was a best selling device. They also offer the Kindle 3G with Ad Support for $50 less than its usual price. Offers like this really seem to be clicking with consumers. Amazon is a classic case of how overall excellence as a company is sure to translate to results. They are known for their customer friendliness, their willingness to go out of their way to help consumers and their excellent logistics. This enables them to price their products competitively. Their strategic tie-up with AT&T for Ad-support has helped them push their e-book readers to lower and lower price points. While their competitors like the B&N Nook and the Kobo E-Reader too are great devices, they have failed to achieve the momentum that Amazon’s Kindle has. This is because they have a more integrated eco-system with wireless purchase of books, wireless sending of documents, backup of all bookmarks and notes on Amazon’s servers and even textbook rentals . Amazon has been on a new high recently, having enjoyed decade-high earnings. While companies like FlipKart and InfiBeam have Amazon-like business models in India, Amazon themselves may be even planning to come to the country. They have an office set up in Chennai already, and next year we may even see them in the Indian market. It is to be noted that the Kindle can be bought in India from Amazon.com and shipped here for a reasonable Rs. 800 more ($18) using a service called Shop And Ship . This effectively means the Kindle can be bought in India for just around Rs. 6000 . This is a more affordable solution than buying it from a local reseller in India, as they usually charge a hefty premium.


