Amazon cuts Kindle price to $299

By Alexandria Sage

SAN FRANCISCO (Reuters) - Online retailer Amazon.com has cut the price of its standard Kindle electronic reader by 17 percent to $299 (186 pounds), the company said on Wednesday, the latest salvo in the war for digital readers.

The price cut comes amid a budding digital book battle where rivals like Amazon, Sony Corp and a host of smaller companies are anxious to get in on the ground floor of what some say is the future of reading.

Amazon said customers who had ordered Kindles that had shipped within the past 30 days would receive a $60 credit on the price difference.

Electronic readers allow consumers to read books, magazines or newspapers on a tablet that downloads content digitally. While the devices are convenient for those who travel and embraced by avid readers on the go, their high prices have been a barrier to many.

"While it is a significant drop both in terms of the overall percentage of the price as well as getting under the $300 barrier, it is still not going to be enough to break it out of its niche," said Ross Rubin, consumer technology analyst at the NPD Group.

In February, Seattle-based Amazon unveiled the second version of its digital book reader, priced at $359. The first, which debuted at $399 but whose price was later reduced to $359, came out in November 2007 amid much fanfare.

'DIGITAL VENDING MACHINE'

Amazon has pointed to the Kindle as a growth driver and said sales have surpassed expectations, without disclosing sales or profit data.