Peter Kafka

Recent Posts by Peter Kafka

It’s an E-Reader Price War! Amazon Trumps Barnes & Noble With $189 Kindle.

That didn’t take long. This morning, Barnes & Noble (BKS) dropped its low-end Nook e-reader to $149 and its 3G model to $199, giving it an edge (pricewise, at least) over Amazon’s Kindle.

Not any more–Amazon (AMZN) just cut the price of its 3G Kindle model from $259 to $189.

The 27 percent price drop was no surprise–everyone who follows the market assumed the Kindle would drop below $200 soon. There is still a belief that Amazon will add more bells and whistles soon as well to help the device compete with the iPad from Apple (AAPL). But I have a feeling that Jeff Bezos and company will resist the urge to pile on features for features’ sake.

The choice for consumers now is clearer than ever: Get a single-purpose reading device for less than $200 or pay much more for a computer that also has e-reading software.

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik