Amazon announces $139 Kindle

Today Amazon put an end to months of rumors, and announced two new versions of its 6″ Kindle.

The $189 model is similar to the Kindle 2 but includes Wi-Fi as well as 3G connectivity. It’s also slightly smaller and 15% lighter than the Kindle 2, has a slightly modified button layout, and uses the new higher-contrast eInk screen first announced earlier this month in the DX. Oh, and the battery life is estimated to last as long as 1 month with wireless turned off.

The big news, however, is a new $139 model with all the same features except for 3G; it’s Wi-Fi only.

I can say from experience that unless you spend a lot of time away from your home wireless network, the 3G on the Kindle is more of a luxury than a necessity. I’ll personally probably buy a Wi-Fi model and gift my Kindle 2 to a family member.

Both versions come in black or white, similar to the refreshed DX model.

These price points put the Kindle $10 under similar offerings from Barnes & Noble’s Nook device. Will B&N respond with another price cut? Can it afford to?

And now the bad news. Although you can pre-order either model immediately, Amazon won’t start shipping them until August 27th. It looks like the huge uptick in Kindle sales the last few months wiped out their inventory earlier than the retailer anticipated.

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