Amazon Drops Kindle 2 Price to $299

Amazon.com has slashed $60 off the price of its newer, larger Kindle 2 eBook reader...although the even newer (and even larger) Kindle DX remains $489.

Amazon.com has cut the price on its Kindle 2 ebook reader from $359 to $299, representing a $60 price cut. Launched back in February, the Kindle 2 is Amazon’s second-generation ebook reader, featuring a 6-inch 800 by 600-pixel eInk display capable of displaying 16 shades of grey and wireless connectivity to Amazon’s Kindle Store via Sprint’s 3G network, so users can buy and download new content while they’re on the go.

Amazon has not changed the pricing on its larger Kindle DX, which was introduced back in May and features a 9.7-inch display and native PDF support. The Kindle DX is currently sold out, but retains its $489 price tag.

Amazon says the price cut on the Kindle 2 comes from decreasing manufacturing costs and growing sales volume. Amazon may also be benefiting from Prime View’s acquisition of display maker E Ink last month, which means the folks who make the Kindle’s innovative display and the folks who assemble Kindle devices are now all the same company.

Amazon has been criticized for high pricing on its Kindle readers; the price cut might also be a way to bring the cost of the Kindle 2 more in line with other popular consumer electronic devices that compete to a degree with the Kindle reader, like Apple’s iPhone and iPod touch.

Industry reports indicate Amazon has sold about 1.5 million Kindle units to date.