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When I first bought the Kindle 2, I was stuck in that dilemma; do I want to pay upwards of $300 to buy an eReader? It took me a few days before I finally plunged and bought the Kindle 2. Since making my purchase, Amazon has dropped the price to $300, to make it more appealing to consumers and compete with other eReaders with a similar price range. But even with a lower price tag, the Kindle and other eReaders are still very expensive.

A new study by Forrester Research says consumers are still not buying into the whole eReader craze because of the price. According to the research, consumers feel that in order for eReaders to become a hit, they need to cost around $50. The problem is eReaders cost more than $50 per unit to make. Forrester says in order for the price of such devices to go below the $100 threshold, manufacturers might need to add a subscription model ala cell phone plans. Newspapers and magazines are the first choice since print advertising is declining and eReaders would be the next best thing, especially if they become a hit with consumers.

Putting a subscription model still won’t matter. As long as books are around, eReaders are going to come in second. They won’t become a hit like the iPod did just because most people don’t read every chance they get. eReaders are still a niche product and until more people start to read often, it’ll continue to become a niche market, so coming up with different tactics to get around the high cost just might not work in the end.

Do you think prices for the eReaders are too expensive? What should the average cost be for an eReader?

(Via PCWorld)


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« Boston Prep School Destroys Library, Replaces “Outdated Technology” With 18 eReaders
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