Is this the death of paper books?This week, Amazon (NASDAQ: AMZN) unveiled its new e-book reader, the Kindle. As Beth Gaston Moon reported in her preview, the 10.3 ounce hand-held reader will retail for $399.
I had great hopes for this device, not the first to market but certainly the best. The type appears crisp, promising to be as readable as paper print. The home run here for Amazon is the content delivery system. Through an arrangement with Sprint, Amazon will deliver content to the Kindle on demand anywhere within Sprint cell network coverage, without the need to be a Sprint customer.
Other positives for marketing the device include the availability of newspaper and blog feeds via the same network, as well as free access to Wikipedia and a built-in dictionary. A high-capacity battery and the ability to expand memory via an SD card are also good selling points.
There are, however, some downsides to the device. At $9.99, the price of bestsellers is rather steep considering the obvious cost savings in delivery. I would have expected something in the neighborhood of $7-8. The prices obviously are set to protect hardcover sales at $20+, which I think shows some blindness about the market placement of this device. If it works, it won't work because the few thousand hardcore buyers of hardbacks segue to this reader. It will work because it will capture the wider paperback reading public, and those who don't read a great deal outside of papers and magazines.
The retail price of $399 is also too steep for such a narrow-use device. When the sexy, colorful Apple (NASDAQ: AAPL) iPhone sells for the same price, and offers such a variety of services, I question how Amazon will be able to sell the Kindle for the same price.
For this to fly, I believe the company will need to dramatically drop the price of content and the price of the reader. It has only the slimmest of competitive advantages, as the rapidly improving displays of convergence devices such as the iPhone are only a generation or two away from providing an equally crisp display.
I firmly believe the paper book will be obsolete within ten years, but the Kindle doesn't look like the book killer app to me.











Reader Comments (Page 1 of 1)
11-20-2007 @ 2:45PM
imwhiplash said...
Hmm...can't imagine giving up the feel of the slick book cover in my hands, the colorful, creative artwork on both covers, scrutinizing the authors b&W photo on the back, the crisp feel of new pages, that 'new book' smell that's like nothing else.
Can't imagine not having the joy of actually turning pages and holding my breath to see if indeed the main character figured out 'whodunnit' and the following resounding smack and sigh of satisfaction on closing the book after the last page.
What about the amazing crackle of a newspaper? The snap and rustle of the oversized pages when shaking them to get them under control, the slick, cool circular adds tucked like secrets between the middle folds? The musty yet sharp smell of the paper and ink and even the inky residue left on my hands after devouring the ENTIRE sunday paper? Heady stuff!
CAN only too well imagine the nasty headache from trying to read too long on a little computer screen...
I think a reader will actually take away from the reading experience unless it's maybe a technical manual or something similar.
On a rainy day I'm gonna be expected to sit in front of a crackling fire buried under a fluffy, soft blanket and curl up with a good.... hand-held computer?!?! (Isn't that in essence what a reader is?)
Nah! This product will not for me or any of my reading circle buddies across the world. Nothing could ever replace the reading and FEELING an actual paper-and-ink BOOK whether hard or soft back for me and I imagine other voracious readers like me out there!
What's next, virtual gormet dinners?!??! No calories but also no pleasure?? Ha!
11-20-2007 @ 12:04AM
Alex Esguerra said...
I totally uinderstand the apprehension but why not let the people decide if KINDLE will work or not.
Besides, this is one of the areas where I commend SPRINT in spending their good hard marketing dollars as this educational.
11-20-2007 @ 3:05AM
Kontra said...
While “the iPod of …” has become a cliché to describe any product with a semblance of distilled design sensibilities emanating from Cupertino, there is one fundamental strategic reason why Kindle won’t be like the iPod: content. The iPod had it, Kindle doesn't. Read why here:
"Why is the new Kindle eBook reader from Amazon and not Apple?"
http://counternotions.com/2007/11/19/kindle-vs-iphone/
11-20-2007 @ 5:39PM
Ross Levatter said...
As a long-time and always satisfied Amazon buyer, and as a stock holder since it was at $3, I was looking forward to the Kindle. Now that I'm seen it, I'm a little disappointed. It's not the price--it's not for everyone; the ones that want something like it can afford $399. But I see at least two problems:
1. (I'm assuming, I've not seen otherwise) No images. Downloading a newspaper is neat, but without the images, why not just use your iPhone and link to the paper with Safari?
2. More importantly, how do you store this thing? It's too big to carry in your shirt pocket. Are we supposed to carry it by hand everywhere we go? If so, I can see it easily being forgotten and left behind in a public place. Are we supposed to take it into the public bathroom stalls at restaurants with us? A book I brought to the restaurant I leave behind on the table. A $399 very portable computer? I don't know about that. Too bulky to fit into most women's purses easily. Does every potential purchaser have to be of the backpack generation? If the idea is to only use it at home, it loses a lot of its allure.
11-28-2007 @ 2:32PM
Bob Katayama said...
I feel that the size is good cause I am willing to compare the Kindle only to what it is replacing which is a hard covered book.
Slightly smaller, thinner and much lighter.
I have many PDA's and do use them occasionally to read ebooks but I find the screens small and glare is an issue.
The Kindle does not a problem with glare and the screen has large clear text.
I would not accidentally leave the Kindle behind in a restaurant cause it is large enough to not forget it. I am one of those backpack generations but I have no issues in carrying the Kindle in my hand like a regular hard covered book. I hate pulling out and putting back the PDA into a case or holder everytime I get on or off the bus/subway. I usually wind up holding my PDA during the whole trip even though I may have my backpack with me.
Maybe too large to fit into a woman's purse but that has always been the case with hard covered books and has never been any real out cries bacuase of this. I see lots of woman all the time on the bus or subway reading hard covered books and not paperbacks.
I feel the Kindle will be a largely successful product with the older generation.
11-20-2007 @ 7:49PM
Dave said...
For those who can't forsee giving up the look and feel of a hardcover, or even paperback book. I can remember the same thing being said about the transition from LP record albums to the smaller CDs. The artwork, some with several book-like pages, was going to be too difficult to part with. Not only did we part with it, but now even the tiny CD cover artwork is vanishing in an all-digital music delivery. The real success of a eBook reader will only come when the monopolistic hold on academic books is broken. Can you imagine a college student who wouldn't gladly plunk down $400 for a device that will hold all his textbooks for his entire college career? Not to mention for $10 a book. I think that's like one or two semesters of books at current prices. Now extend that to highschools.... Hello mainstream.
11-20-2007 @ 8:50PM
wendyb said...
I just got this wonderful Kindle today. Fast to learn and I have already subscribed to one magazine and a newspaper.
I also bought two books--fast to receive by wireless!
I love the fact that I can store so many books and read them in however large print I want on a screen that is easy and restful on the eyes!
I will be RVing fulltime in the near future and now all my book friends will only take a small space of one paperback book!
Price--worth every buck! I just LOVE it!
11-21-2007 @ 7:21AM
KenJr. said...
One review said there are currently 100 of 112 current NY Times bestsellers available. To me, that means hardcover books. I'll happily spend $10 for the privilege of no longer having to wait until the book is in paperback. Cheaper would be better but I suspect much of that goes to the author/publisher.
On another review there was a picture of a Kindle showing the NY Times complete with front page photo (someone stated concern about no images).
It'll be easier to select books this way. For instance, it'll be nice to have a list of all the current NY Times best sellers right at my fingertips.
On trying to justify purchase, here are some bullet statements that are residing on my iMac desktop:
. Wireless - No computer, No cables - < 1 minute book download
. Simply click, buy, and read. (even if you're in the airport or sitting in a park)
. High resolution display - Sharp B&W screen called Electronic Paper
. Reflects like paper - No backlight - No PDA like glare - No eyestrain
. Lighter and thinner than a paperback
. No monthly fees except for newspapers or magazines - Amazon pays for the wireless connectivity
. Dictionary allows word lookup while reading, and allows free wireless access to Wikipedia
. You can read the first chapter of any book for free before you decide to buy
I want one. I think it'll fly. I'm usually right about determining which electronic toys will make good. To me, this is a no-brainer.
11-21-2007 @ 7:25AM
Tom Barlow said...
Amazon has been kind enough to offer me a Kindle to review, so after it arrives I'll post an in-depth reaction. You all have made some very insightful points.
11-23-2007 @ 3:19PM
simon thomas said...
Meh. This thing'll be a footnote, for several reasons.
1 - in an era of convergence, people's tolerance for another gadget to carry around will be even lower than latterly. And in an era of progressive miniaturisation, this think already looks big.
2 - content. Amazon really needed an attention grabber here, along the lines of a library of open copyright classics available free. Instead you have an expensive gadget, where all the content comes at what looks like a premium price. Meanwhile, the price points of actual, you know, books on Marketplace continues inexorably downwards. So, comparatively the price of their e-book offerings look more expensive by the week/month. They really needed some cheap back catalogue stuff, too.
3 - name. Kindle - what were they thinking? I know, they mean as in imagination. But it just conjures up images of bookburning, which isn't clever when you're marketing something to people to whom that's going to be particularly repugnant. All I can think is it expresses Amazon's unconscious attitude to physical books. "Enough with these warehouse hogging zero-margin things, already."
11-28-2007 @ 2:15PM
Bob Katayama said...
I feel the Kindle will be a successful product. I have been using PDA's for over a decade now and feel the Kindle is missing many great PDA features.
That being said though, it is a good thing that many PDA features are missing cause this is an Ebook reader and that is what I want in the end. Not a multipurpose device like a PDA since I already have zillions of them.
The most important aspect is that you can purchase and download books wirelessly from anywhere the carriers signal is available with no added shipping, downloading or carrier service charges.
I have posted more positive comments about the Kindle at www.technobrains.com