How low can you go? Amazon and Barnes & Noble are dropping prices of their e-book readers as new competitors emerge. Amazon slashed the Kindle's price from $259 to $189. Barnes & Noble, meanwhile, cut the nook's price to $199, and introduced a stripped-down model that only offers Wi-Fi Internet access for $149, the Wall Street Journal reported.
We noted earlier this month that the Libre, being sold by Borders, threatened to break out of the pack of e-readers with its low, low price: $119.99. But the market leaders are wisely fighting back. As they assess the economics of digitization, they may be taking a lesson from companies who make shaving products: Give away the razors for a low price, and make your money on the blades. That's likely to continue as new devices emerge.