Borders (NYSE: BGP) to Overtake Amazon (NASDAQ: AMZN)
May 19, 2010 by Debbie Dragon
rs (NYSE: BGP) Australia has recently announced the release of “Kobe” an ebook reader, and it’s intentions to steal Amazon’s (NASDAQ: AMZN) international crown for readers of both books and ebooks in Australia. Borders has made plans to distribute the “Kobe” to it’s Australian Borders chain of stores, and will also give the Kobe readers full access to its eBook store. They have also simultaneously launched software for the Mac and P.C. so ebooks can be downloaded from Borders and read at home via computers.
“Kobe” is basically an ebook reader, trim both in price and size compared to Amazon’s “Kindle”. It’s price is going to be $199 (Australian), roughly $149 (American). It also boasts a universal reader, allowing for almost any ebook to be read on the device. The only real difference is that the “Kindle” has a G3 network, whereas the “Kobe” has to be connected to a personal computer or laptop. To further their strong hold, Borders has also announced that it’s going to provide ebook software for more mobile devices and computers to be coming soon.
Borders Australia has also taken a more aggressive stance to win some ground in this international ebook war. They vowed to try to match Amazon’s price on all eBooks, and then take an additional 10% more off. All of these deals are in hopes that Borders can get a good hold of the international sales that Amazon has enjoyed for so long. Borders has already announced that on its website all ebooks are available, some even for free.
Typically this kind of competition benefits consumers greatly. We will have to wait and see how Amazon responds to this aggressive sales plan that Borders has announced. But even now the savings can be felt, and Australia greatly benefits in having a good quality ebook reader that can accept all kinds of eBooks. The prices are roughly $50 dollars less then the Amazon “Kindle”, but will people chose the “Kobe” over the “Kindle”? Will the G3 network the “Kindle” has that “Kobe” does not be the deal breaker?
Reference: http://topnews.us/content/220028-borders-australia-gearing-undertake-amazon
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