Amazon announces ad-supported $114 Kindle in latest bid to combat Apple's iPad:
As consumers increasingly turn to the iPad for reading, Amazon has bottomed out on price in order to compete, announcing a cheaper ad-supported version of its Kindle e-reader.
Amazon announced on Monday the new 'Kindle with Special Offers,' which will go on sale starting May 3 for $25 less than the standard $139 Kindle. The device identical to the third-generation Kindle and is currently available for pre-order.
The new device will display ads and special offers on the screensaver and on the bottom of the home screen, but not during reading. The ad-supported Kindle, which is Wi-Fi only, will include offers such as a $20 Amazon Gift Card for $10, 6 Audible Books for $6, and an album from the Amazon MP3 Store for $1.
Launch sponsors of the device will include Buick, Chase, Olay and Visa.
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