Ad-Supported Kindle

The online retailer was set to announce Tuesday that the new Kindle with Special Offers will cost $114 – $25 less than the currently lowest-priced Kindle – and include advertisements on the bottom of the device’s home page and on its screen savers. Seattle-based Amazon will start shipping the newest Kindle on May 3, and it will also be sold in Target and Best Buy stores on that date.

The Kindle will become even more popular than it is, but by how much? I’m not sure. Drop the price to $99 and it’ll be by a lot more. Would a hardcore reader enjoy ads? I’m not so sure. Amazon should also consider an option to pay $25 to permanently get rid of the ads if the user wanted to at a later date. My forecast: a $99 non-ad supported Kindle by Thanksgiving.