New Freescale Chip to Drop E-Reader Prices

If a high price tag has been keeping you from getting all trendy with a new e-reader, the next-generation of e-readers may just sport the friendlier price tag that you’ve been waiting for. Freescale has manufactured a new e-reader chip that combines both the applications processor and display controller into one, single chip. The company estimates that the new chip could cut about 30 bills right off the top of the price tag, so think Amazon Kindle for $229 retail. The new chip, which will be integrated into market devices by the end of 2010, will also deliver faster performance.

Analysts say that price is still one of the biggest limiting factors in the e-reader market. Freescale expects that the market will really see a surge once prices drop below the $200 mark.

Since we don’t really know what will happen after a $30 drop in price (or $60 for that matter), we’ll open it up to those that don’t own an e-reader: would you buy a Kindle at $229? How about $199? Is price a major factor barring you from the market, or is the e-reader not of interest? [via Reuters]