Amazon.de Phases Out Kindle Paperwhite 2: A Shift in eReader Lineup
Alright, the headline isn’t entirely correct because you can still find the Kindle Paperwhite 2 on Amazon.de’s homepage. However, today brings a rather significant change in their offerings. Despite the introduction of its successor, the popular eBook reader has remained part of the Kindle range for many months, but as of today, it is finally being phased out.
From now on, only the Kindle Touch, Kindle Paperwhite 3, and Kindle Voyage are being promoted as the current models on Amazon.de. The previously linked Paperwhite 2 is no longer appearing in the overview.
A quick search reveals that the eReader has not only disappeared from the page menu but can no longer be bought new for 99 euros. Instead, you’ll be directed to Amazon Warehouse Deals on the product page. Only the 3G version is still available as a new device for 159 euros.
For the first time since 2013, the Paperwhite 2 is no longer being promoted.
Price War Between Amazon and Tolino
But why is this worth mentioning? It’s not unusual for an old model to be pulled from the market when a successor appears, is it?
While that’s usually the case, it’s not entirely true for the Kindle Paperwhite in Germany. The Paperwhite 2 was recently offered at a lower price than other E-Ink Carta competitors from Tolino and Kobo. The 20 euro price advantage isn’t currently offered with the successor, as it is priced at 120 euros just like the competition.
This is likely the main reason the Kindle Paperwhite 2 was available for so long. In an earlier article, we noted that the eReader was still actively promoted only in Germany.
The German market is Amazon’s most fiercely contested in Europe (and possibly worldwide). Despite a relatively late market entry, Amazon quickly gained market share due to a lack of serious competition, but this changed with the launch of the Tolino alliance in 2013, which positioned itself as a strong contender, altering the market landscape for the online retail giant.
With the lower price of the first Tolino Shine (99 euros vs. 129 euros for the Paperwhite 1 & 2), Amazon was suddenly no longer the price leader. This was reflected in sales figures, as Tolino partners managed to capture a 12% market share within a year—more than any previous long-term competitor of Amazon.
This didn’t go unnoticed by Amazon, prompting Paperwhite 2 to be discounted through ongoing promotions and finally offered at a lower permanent price. Essentially, every Tolino launch or price campaign was met with a corresponding sales action.
Competition on Equal Footing – Both Technically and in Price
Today sees not only a change in pricing structure but also in the overall market dynamics. For the first time since the Tolino alliance’s market entry (!), the two competing models, Tolino Shine (2 HD) and Kindle Paperwhite (3), are not only priced the same but are also technically on par.
In the device test and comparison of Tolino Shine 2 HD and Kindle Paperwhite, it showed that the display quality of the new Tolino eReader can finally keep up with the main competitor from Amazon.
Kindle Paperwhite and Tolino Shine are now on exactly the same level both technically and price-wise.
Therefore, it will be particularly interesting to see what the coming months will bring. While Amazon and Tolino will undoubtedly not bury the hatchet, the price war—which is certainly problematic financially for both—might come to an end, at least for now.
For customers, this means at least in the short term that prices in the illuminated comfort class, as was predicted a few months ago, will now actually rise. While there will certainly be short-term promotional offers, whether the 100-euro threshold will be permanently breached with the new “Retina” models remains doubtful at least for the near future.
How Long Will the Kindle Paperwhite 2 Remain in the Amazon Range? [13.07.2015]
Typically, a model change in the electronics market, and especially with eReaders, is a “no-brainer”—something not worth losing sleep over. The old eBook reader is phased out, and the new, better, faster, lighter, and more beautiful model enters the market. Case closed—or so one would think.
In the case of the Kindle Paperwhite, the situation for Amazon in Germany is actually not that simple. Here, the retail giant finds itself in a tough competition with the Tolino alliance, which is notably reflected in a pricing battle for reading devices.
The competition started with the Tolino Shine, which was significantly cheaper than the (technically superior) Paperwhite 2 upon release and quickly gained market share. Later, Amazon turned the tables and lowered the eReader’s price just in time for the launch of the Tolino Vision 2. With few exceptions, Amazon has kept the price of the Kindle Paperwhite 2 consistent since then.
With the Price War Spiraling into a Dead End?
Now, the successor is on the market and the retail giant faces a dilemma: The new Paperwhite currently costs at least around 120 euros, making it significantly more expensive than its predecessor. More than that, at this price, customers must choose the ad-supported version. Without ads, there’s even a roughly 40-euro surcharge compared to the previous model.
This issue is unique to Germany, as everywhere else, the new model (with ads) costs the same as the old one (without ads). Therefore, the Paperwhite 2 was simply replaced by the new model in almost all other Amazon countries.
However, in Germany, Amazon can’t easily take such a step due to the aforementioned price competition. Thus, the Kindle Paperwhite 2 remains available. A few weeks ago, I learned that the retail giant plans to only sell off the existing stock and remove it from the range once the inventory is depleted.
When Will the Paperwhite 2 Disappear?
But is that really the case? Looking at the Kindle section on Amazon.de today reveals an interesting change: Instead of referring to the Kindle Paperwhite 2 as a “previous model,” as was the case right after the introduction of the Paperwhite 3, the eBook reader is now marked with its release year: Kindle Paperwhite (2013).
Change in product designation, Source: Amazon.de
This is admittedly a small change, but it could indicate that both new and old models might be offered side by side for a longer period. To those who argue it’s an insignificant text change, remember the secret facelift of the Paperwhite 2, which doubled the storage, but aside from a new product ID and a briefly surfaced reference to a “Kindle Paperwhite (2014),” there wasn’t much else to indicate the change. Additionally, this is a unique step, as other parallel sales (e.g., with the 3G model) were previously conducted exclusively under the “previous model” label.
It’s quite possible that Amazon has a huge inventory of the Paperwhite 2. Maybe devices from other countries are being shipped to Germany to be sold here. This process could take several weeks or even months before the device finally disappears from the range. In this case, a change in product designation does make sense, as not many people like buying a “previous model.”
Alternatively, Amazon might simply be waiting to see what new offerings the Tolino partners present at the Frankfurt Book Fair and will respond accordingly.
Special Offers and Sell-Off via Prime
In this context, the price reduction of the new Kindle Paperwhite 3 is also noteworthy. Amazon temporarily reduced the device to 115 euros—not only on Amazon.de but also at Saturn and Media Markt. Interestingly, these electronics stores apparently achieved this price without any “special offers,” as noted in our forum.
Moreover, another reader informed me a few days ago that the Paperwhite 3 was available at Saturn in Berlin for just 95 euros (on offer)—albeit ad-supported. The 20-euro price difference fits the usual pattern of “special offers.”
Currently, Amazon is also selling the Paperwhite 2 for 95 euros to Prime members in a “lightning deal.”
As a prospective buyer, it can be easy to lose track of which device to buy at what price and when. Nonetheless, the rapid (albeit temporary) price reduction of the new model might provide a glimpse of what to expect for this year’s holiday sales.
Even now, the new “Retina” Paperwhite is reasonably priced, but at around 100 euros (which has apparently already been briefly undercut), it would be a real bargain and challenging for the competition to keep up with. However, the Paperwhite 2 as an affordable model already presents challenges for Tolino partners—the price difference to the technically comparable Vision 2 is usually around 30 euros.
Germany is Different: Kindle Paperwhite 2 Remains (For Now) in Stock [22.06.2015]
A few days ago, Amazon unexpectedly announced a new version of the highly successful Kindle Paperwhite and opened it for pre-ordering. But not only was the announcement surprising, the sales launch is unusual: In all countries, the device will be available simultaneously from June 30th. Previously, Amazon’s home market in the US typically got at least a few days or weeks’ head start with every Kindle launch. The fact that the international market launch is happening simultaneously now indicates that this market is playing an increasingly important role in Amazon’s digital book offerings.
This applies especially to Germany, as another detail shows: Unlike most other Amazon countries (USA, UK, France, Spain, Italy, Netherlands, Australia, China, Japan, Brazil, Canada) where the new Kindle Paperwhite 3 is launching, the Kindle Paperwhite 2—i.e., the previous model—is still being offered here.
In Germany, the Paperwhite 2 continues to be actively promoted, unlike in other countries
This makes Germany the only one of 12 countries where both the new and old models are being actively marketed and sold side by side. A look at the country pages shows the difference (see image).
Note: India forms a small exception due to the sales structure. There, the previous model is still being sold by a sales partner at the same price as the new release.
Intense Competition in Germany
No need to speculate about the reasons: The German eBook market is arguably the most fiercely contested in the world. Nowhere else does Amazon face as much resistance from national competitors. The Tolino alliance, consisting of Thalia, Weltbild, Hugendubel, Libri, Club Bertelsmann, and Deutsche Telekom, forms a strong counterbalance to the Kindle ecosystem.
As mentioned several times in the past, this is reflected in a tough price war for the 6-inch models: The Tolino Shine undercut the Kindle Paperwhite’s price by 30 euros during its launch and first Christmas sales season. Together with the virtually nationwide store network and in-person advice in physical bookshops, the Shine achieved a 12% market share within a year.
As a result, the device has surpassed all previous Amazon competitors (Kobo, Pocketbook, Sony, etc.). Although Amazon remained firmly in the lead with over 40% market share at the time, alarm bells clearly rang for those responsible because the price battle has been raging ever since.
The Kindle Paperwhite 2 became increasingly cheaper, initially for a limited time, then permanently. Since November 2014, the eBook reader has been available for around 100 euros, significantly undercutting the technically equivalent Tolino Vision 2.
New Pricing, Old Competition
However, with the launch of the Kindle Paperwhite 3, the pricing strategy is changing. Amazon offers the new model with ads for around 120 euros, significantly narrowing the price gap with the main competitor. Without ad support, the price is 140 euros, making the Paperwhite 3 more expensive than the Vision 2.
It should be noted, though, that the new Amazon eReader has superior display technology with nearly twice as many pixels. Thanks to the new text engine and the “Bookerly” font, the result is visibly better.
New technology, new price for Amazon’s most important eBook reader. Left: Kindle Paperwhite 3, right: Tolino Vision 2
However, better technology in the German eReader market often only represents a potentially small part of the purchase decision, as demonstrated by the success of the Tolino Shine. The first Tolino eBook reader uses older E-Ink Pearl screen technology compared to the Paperwhite 2 and has a significantly lower contrast lighting. However, this hasn’t hindered rapid market share growth, as technical differences are not easily communicated and perceived by laypeople—the price, however, is.
Thus, the Kindle Paperwhite 2 remains in the German stock (at least for now). How long this will continue remains to be seen. I’ve already inquired with Amazon, but the press office couldn’t provide any information yet. It’s possible that Amazon.de doesn’t want to show its hand and may not disclose further details.
UPDATE: I have since received feedback that Amazon.de will continue selling the Kindle Paperwhite 2 until the stock runs out. We’ll have to wait and see when that will be. Interested customers can still take advantage, as the device without ads for 100 euros remains a bargain and an excellent choice for digital reading!
Kindle Paperwhite 2 Remains an Excellent Choice
The availability of the Paperwhite 2 means customers have more choices. Despite the launch of the new model, the device hasn’t gotten any worse and maintains our purchase recommendation.
Even by today’s standards, the lighting is excellent, as is the contrast with and without illumination. The new software, including the font update, will likely also come to the Kindle Paperwhite 2 over time, leaving lower resolution as the main distinguishing feature from the new model.
It’s quite possible that Amazon.de will offer both Paperwhite generations side by side over an extended period. During the holiday season, further price reductions on the old model could keep them competitive without too much impact on other pricing structures.
Amazon might also wait to see how the Tolino competition positions itself starting this fall. Currently available models are likely to receive upgrades, which could also change pricing. Amazon’s swift and direct response to Tolino alliance offers has been evident in recent months.
