The Kindle Fire is hot. Amazon.com
Well, guess what? That price point might even get lower, even as rumors continue to swirl that Apple
According to a recent Ad Age report, Amazon has been approaching advertising execs to sell ad space on the Kindle Fire. The e-tailer is supposedly looking for ad commitments of at least $600,000 for packages, which would run for a couple of months. In February, Ad Age also reported that Apple had slashed its own minimum cover charge for its iAd mobile advertising network to just $100,000, after it originally launched with a $1 million minimum.
What's not entirely obvious is whether Amazon is looking to include these ads in the current Kindle Fire or the next-generation Kindle Fire that's widely expected later this year to further dominate the Google
Amazon also isn't guaranteeing a specific number of devices that the ads will reach, and there's generally a lot of uncertainty with what it's offering advertisers. One of the unnamed execs said: "It's kind of an expensive buy to not get a guaranteed audience and measurement. It doesn't comply with a lot of our necessary planning rigor."
Here's where my own speculation begins. Amazon already offers an ad-subsidized version of its popular Kindle e-ink readers. The discount that prospective buyers can see ranges from $30 to $50 if they're willing to subject themselves to ads on the device. I have a feeling Amazon will probably try to do the same with the Kindle Fire, subsidizing its already low price (which sells around cost) to broaden its installed base and boost content sales.
If Amazon's selling millions of Kindle Fires at $199, how many do you think it could sell at $150?
Fool contributor Evan Niu owns shares of Apple and Amazon.com, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Google, Apple, and Amazon.com. Motley Fool newsletter services have recommended buying shares of Apple, Amazon.com, and Google, as well as creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.