Cover via AmazonAmazon lowered the price of its Kindle 3G Wednesday, after reaching a deal with AT&T to sponsor Kindle 3G in exchange for advertising space, dropping the price of the e-reader to $139. The price drop comes shortly after Amazon’s May announcement that it would sell the Kindle 3G with Special Offer ads for $164.
Wednesday’s announcement did not include any update to the e-reader physically, but customers are likely to see AT&T ads replace the Kindle’s customary screensaver, as well as ads featured along the bottom of pages.
An unsponsored Kindle 3G runs $189.
“This is an obvious strategy to make Kindle available to the masses at an affordable price,” according to a Stifel Nicolaus analyst who believes the newfound partnership with AT&T will be profitable for Amazon.
Though the Kindle has been the pacesetter in the e-reader market, Barnes & Noble’s Nook is a growing threat and the tablet market is a popular alternative for many consumers with options like the Apple iPad and a string of devices running on Google‘s Android operating system.
Shares of Amazon were up 1% to $213.50 Wednesday. The stock is up 19% since the start of the year.
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