Competition from iPad spurs eReader price war

Has the debut of the Apple iPad put eBook readers on the endangered-species list? Some pundits think so, though we aren't as sure. In any event, last week, Barnes & Noble fired the first salvo in an escalating eReader price war by dropping the cost of its top-of-the-line Nook to $199 and by introducing an entry-level, Wi-Fi-only Nook for $149. Almost immediately, top competitor Amazon.com responded with a $70 price drop of its own, reducing the cost of the Kindle to $189.  Borders joined the fray by offering a $20 gift card with its $149 Kobo eReader. This week, Amazon rolled out a new version of its high-end Kindle DX, cutting its price by over $100 to $379.

iPad puts the hurt on eReaders

Experts say all this was touched off by the iPad's early and astounding success. Apple reports that it has sold 3 million iPads in the tablet's first 80 days on the market. Of course, the iPad's bag of tricks contains a full-featured, full-color, eReader app.

Of the Nook's price drop, Simba Information senior analyst Michael Norris tells the Associated Press that 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." For more information on the Apple iPad, including its eBook reader features, see our report on tablet computers.

But which is better for reading?

Before you write off dedicated eBook readers, however, it's important to remember that experts say they're the better choice for individuals interested first and foremost in reading eBooks -- never mind the myriad other features tablets like the iPad also offer.

For example, while ZDNet's Jason Perlow is among those counting the days until the demise of the dedicated eBook reader, in a head-to-head showdown between the iPad and the Kindle he finds that the latter provides the better reading experience. The iPad disappoints when used for reading outdoors, but overall, Perlow says "the Kindle reader application was superior to iBooks overall for serious readers in any light condition."

You can find out more about the available eReaders, including their pros and cons, in our report on eBook readers.