Amazon to Release Ad-Subsidized Kindle for $114

Amazon is dropping the price of its Kindle e-reader to $114 as it faces increasing competition from Apple, Barnes & Noble and other tablets. The new price point represents a $25 price cut on the Wi-Fi version, but it comes with one major trade-off: ads. The e-reader will be sold by Amazon, Target and Best Buy starting May 3. Ads will appear on the device’s screen saver and show up as a banner on the homepage, but will not appear inside books. Initial advertisers include General Motors, Procter & Gamble and Visa.


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