Amazon: price cuts helped raise Kindle demand

The Amazon Kindle e-reader has seen strong growth after a price cut down to $189.99, with the popular e-tailer reporting Kindle sales outpacing the Apple iPad each month during the second quarter.

As usual, Amazon didn't offer an exact number of Kindles sold, though the iPad sold 3 million units in less than three months.

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"We've reached a tipping point with the new price of Kindle--the growth rate of Kindle device unit sales has tripled since we lowered the price from $259 to $189," said Jeff Bezos, Amazon CEO and founder, in a statement.

Amazon also said the overall number of Kindle e-books sold over the past three months outpaced hardcore books 143 to 100 -- and Amazon has sold at least three times as many e-books during Q1 and Q2 of 2010 than the same period in 2009.

Amazon's online Kindle store provides access to 1.8 million free e-books (older, out-of-copyright books) and 630,000 e-books are available for sale.

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Apple confirmed it sold 3 million iPads in 80 days, and Amazon has had to answer price cuts made by rival e-readers from Barnes & Noble and other companies.   To respond to increased pressure, Amazon has decided to sell the Kindle in all U.S. Target locations.

The rise in popularity of e-readers is expected to continue, so patient consumers can expect to see additional e-reader product launches.

Although some analysts doubt Amazon's control of the e-reader market, I have no problem believing Kindle sales are outpacing iPad sales each month during Q2.  A quick look at the Amazon home page reveals a half-page dedication to the Kindle DX -- which also received a price cut -- along with easy access to e-books and other e-reader choices.

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