Prices slashed on Kindle, Nook e-readers

Amazon.com Inc. and bookseller Barnes & Noble Inc. slashed prices on their rival electronic book readers Monday, responding to intensifying market competition and the success of Apple's iPad.

Amazon slashed the price of the Kindle by $70 to $189, just a few hours after Barnes & Noble reduced the price of the Nook by $40 to $199 and said it would also start selling a new Nook with Wi-Fi access for $149.

Both the Kindle and the original Nook can wirelessly download books over high-speed data networks.

The rapid-fire moves are fanning flames in the rapidly growing market that the book industry sees as a big part of its future.

Michael Norris, a senior trade analyst at Simba Information, said the Nook's price cut indicates Barnes & Noble "is admitting that when they're up against a $500 digital photo frame on acid that does everything, they can no longer keep a straight face when selling something for $259 that only does books."

Digital reading device sales are projected to reach 5 million units this year from 2.2 million in 2009, according to the Consumer Electronics Association.

- Combined news services