Amazon Introduces Cheaper Kindle with On-Screen Ads (AMZN)

Amazon.com

is introducing a new Kindle e-reader that carries advertisements on the bottom of the device's screen. Amazon is set to announce Tuesday that the new Kindle with Special Offers will cost $114. The price is $25 less than the currently lowest-priced Kindle, but its the first time that ads will appear on the e-reader. According to Kindle director Jay Marine, the release of a cheaper, ad-enabled Kindle is Amazon's way of getting the device into the hands of more people. It's also a clear move to compete with Apple's

iPad, wherein apps gain considerable revenue from ads. While some will clearly opt out and pay a bit more, Marine thinks that money-saving offers will be appealing to others. "We think customers are going to love it," he said. The device is expected to ship on May 3rd. Amazon.com, Inc. is primarily an online retailer and consumer service outlet. In addition, the company generates revenue through other marketing and promotional services, such as online advertising, and co-branded credit card agreements. Shares of the company closed down $0.67 on Monday, to $184.04.