“A reliable source tells us Amazon wants to give a free Kindle to every Amazon Prime subscriber.” (Via TechCrunch)’

This should be interesting.  For those of you that don’t know what Amazon Prime is, it is a service that gives the customer free 2 day shipping on their items that they buy from Amazon.  Not every item on Amazon qualifies for this.  You pay $79/year for Amazon Prime.  If you tend to buy a lot from Amazon, this may be the way to go.  I have it and it comes in very handy and I know I get my $79 worth each year.

Ok, so now on to the good stuff.  This would be very interesting for Amazon.  If this is true, yes Amazon would be losing a little money in the short run.  But they are banking on the fact that people who have Amazon Prime will be the ones that will continue to support Amazon and buy ebooks on the Kindle, which they are hoping will recoup the loss of giving you the Kindle for free.  Interesting strategy as they try to compete with Apple and the iPad.

Personally I don’t think this stands a chance against the iPad.  If Amazon is really going to make a difference they need to compete directly with the iPad and come out with a Kindle that will run in direct competition to the iPad.  Right now there is no comparison between the iPad and the Kindle.  The iPad, in my opinion smashes the Kindle in so many different ways.  I think initally this promotion by Amazon may work, but after a while, you are going to see more and more people drawn to the iPad, even if they have to pay for one.

These are my thoughts.  What are yours?  Please leave your comments and feel free to follow me on Twitter @shaun_27.