Amazon's Kindle Goes International

Amazon.com (AMZN) - Analyst Report has introduced a new version of its Kindle reader, which will be sold in the U.S. as well as a 100 other countries. The reader has been priced at $279. 

The company’s Whispernet technology enables Kindle users to download books available at its store without connection to a computing device. This is the primary feature that distinguishes it from Sony (SNE - Analyst Report) Readers, which are also extremely popular. 

Up until now, there was an exclusive agreement with Sprint Nextel Corp (S - Analyst Report) to provide the wireless connectivity required for such downloads. However, the company will use AT&T (T) - Analyst Report for the new Kindle. This is because AT&T has a global reach, which would be necessary for the company’s international plans. 

We think that the product was announced at the perfect time and should enable the company to capitalize on the holiday season. The fact that the product is now attractive for both American and foreign customers, is an added bonus. 

The company has also dealt with possible copyright issues by declaring that the country of download will be the one recording the sale. Therefore, sales of the same book with separate publishers in the U.S. and the U.K. would be recorded accordingly.
 
Although not the primary feature, it looks as if the international availability would expand usage of the device. For example, it could be used to download travel guides in countries where the user is traveling. It would also enable download of both American and local news in foreign countries.
 
Given this backdrop, it comes as no surprise that the price of the older version has been cut by another $40 to $259. Amazon last cut prices from $359 to $299 in July this year. 

The company has also announced that it would exchange the older version Kindles that were bought in the last 30 days with the new international version.

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