Two price cuts don’t make a pattern but Amazon (NSDQ: AMZN) is making the same move with Kindle 2 that it tried with Kindle 1: sell it with a first-in premium, then drop the price a few months later for the fence sitters. Amazon introduced the Kindle in November 2007 at $399, dropping it to $359 the following April. The second-gen Kindle launched in February at $359 — the same price as its predecessor, but as of this afternoon Amazon is selling it for $299.
The $60 price cut sharpens the price difference between it and over-sized sibling Kindle DX, which launched last month at $489. It also puts it firmly in line with the lowest-priced Sony (NYSE: SNE) Reader, which lists for $299; the touch-screen Sony Reader is $399 but can be found for $50 less at Amazon, among other locations.
Amazon said when it cut the price of the first Kindle that it was able to lower costs when it increased the number produced. This time around, it looks like a pricing tactic. Among other aspects, cutting the price is one way of subsidizing sales of more books — that $60 dollars can cover six $10 titles.
Update: Amazon’s reasoning this time (via an e-mail from PR): “We’ve been able to increase the volume of Kindles we