Amazon’s release of a $349 used Kindle DX (refurbished by Amazon, US version) fascinates me as they have now managed to match all 3 of Sony’s new offerings on price. There is also the $399 Refurbished Kindle DX (International version) which is not as cheap but a better fit if you travel outside the US or want better resale value.
While Kindle DX Vs Sony Daily Edition was something a lot of readers would not consider because they couldn’t afford the $489 price of the Kindle DX, the lower price means a lot people will compare the used kindle dx with the Reader Daily Edition.
This post looks at why the used kindle dx is a compelling alternative to the daily edition.
A Reader considering the Daily Edition, suddenly has the Used Kindle DX option
Say you’re in the market for a larger screen eReader, and were considering the Daily Edition because the Kindle DX was out of your budget. You see a used kindle dx and you think –
- It’s the same price. Well, it is refurbished. However, Amazon give you a 1 year warranty, same as on a new Kindle DX.
- There’s Free Internet. The Sony Reader Daily Edition has wireless just to buy books. With the Used Kindle DX you get Free Internet for life.
- The screen is bigger – 9.7″ is great for newspapers and magazines.
- You have read about all the readability problems and glare due to the touch layer on the Sony Touch.
Perhaps, most importantly, you don’t have to wait until December. You can get a used Kindle DX now.
You’ve gone from not even considering the DX to thinking the used kindle dx might be more value for money than the Daily Edition.
Should Amazon drop the used kindle dx to $349 in December?
Amazon are taking the fight to Sony and a good follow-on would be to under-cut the Daily Edition when it comes out.
We know that Sony have a lot of ‘feel good’ benefits –
- ePub support.
- Openness (even though they do have DRM).
- Free Google Books.
- Free Library ebooks and the library finder feature.
Plus it has Touch.
However, Amazon has got some core value propositions Sony cannot match i.e.
- Free Internet.
- Wide range of new books – Over 300K compared to 100K or so from Sony.
- The Text to Speech feature.
The missing ingredient was price and with the used Kindle dx Amazon are beginning to fix that. They drop it to $349 and suddenly Sony sees most of the Daily Edition’s target market eaten up by the used kindle dx.
What about Economies of Scale – When does a new Kindle DX hit the used Kindle DX price?
It’s not clear to me what people think of ‘refurbished’. Are people going to be comfortable buying the used Kindle DX because of the 1 year Amazon warranty?
Given that Amazon has been telling readers they can test out Kindles for 30 days and return them, could it be that a lot of the Refurbished Kindles have hardly been used?
Which brings us to economies of scale and wondering why Amazon is introducing the used Kindle DX instead of cutting prices.
It’s been nearly 4 months since the Kindle DX was released. At what point are economies of scale going to kick in allowing Amazon to knock down the price of a new Kindle DX?
It’d be rather fortuitous if it happened towards mid November. A $425 new Kindle DX and a $349 Used Kindle DX and Sony’s Daily Edition would find its target market torn into three portions.