Write a 2-3 page paper in which you answer the following case question:
Amazon's Kindle 2.0 was priced at $359 and delivery started in February 2009. The price was dropped to $300 in July after a newer model with a larger screen, the Kindle DX, was launched, priced at over $400. In January 2010 Apple announced the launch of the iPad, the lowest priced version of which was to sell for $499. Assume that you are in charge of the pricing of the Kindle models. Explain what methods are open to you to price your products and the factors that you should take into account in deciding on these prices. Then assume that you are responsible for deciding the future pricing of Kindle models over the next year. What prices are being charged now and what would you recommend Amazon charge? Why?