Amazon has reduced the price of its 6in eBook reader by $70 to $189, which with £14 shipping and £25 VAT makes the total cost £172 to UK users.
Amazon's move came just hours after US bookstore Barnes & Noble launched a new Wi-Fi only version of its eBook reader, the Nook for $149. The company also slashed the price of its original Nook, which comes with Wi-Fi and 3G connectivity, to $199, from $259. However, the Nook is currently only available in the US.
The company also said Apple's share of the eBook market will increase from 10 percent to 33 percent in 2015, while Barnes & Noble is expected to gain 15 percent of eBook sales in the same period.
Reuters says some analysts believe dedicated eBook readers such as the Nook and the Kindle are appealing because they consume less power, are easier to read on, and weigh less.
See also: Amazon Kindle vs Apple iPad