When the first Amazon Kindle was released in 2007, it was priced at USD 400. Each subsequent model added design improvements, capacity increases, and/or hardware enhancements, as well as lower prices. In 2010, Amazon introduced two new models, a Wi-Fi only model for USD 139 and a Wi-Fi plus 3G cellular network model for USD 189. This year, Amazon came up with a truly unique price reduction, one that we have never seen in the marketplace. Amazon started offering its two newest models for USD 114 and USD 164, respectively. To get this USD 25 reduction, they didn't take anything away; instead, they added a feature called Special Offers. This brings the basic Kindle down to a very affordable price point, but it also brings something new - advertisements on the Kindle. We decided to take a look at the Wi-Fi Kindle with Special Offers to assess the cheapest Kindle ever, as well as to examine this distinctive marketing maneuver.
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