November 27, 2007 @ 5:50 am

Amazonkindle: An iPod for Geeks

Hype surrounding the Kindle, Amazon’s new portable e-book reader, has been fairly subdued in Australia, especially when compared to the latest iPod or iPhone. No conspiracy however, its release is just bad timing. With all that election coverage, mainstream press space is scarce, and an oddity story about a product us Australian’s can’t buy yet are not high on the media’s agenda. This hasn’t stopped me from getting very excited about this product, and for the future of e-books. The concept is sexy; a portable reader that can download books, newspapers, and blogs from anywhere with mobile phone signal reception, but is also light enough to be easily transported on one’s person. Click on the image to the right for a demonstration.Amazon's Kindle

The question is, will this product be a winner? So far, so good. It’s already sold out, even at the expensive asking price of $450US (or $436 Canadian, ha ha). Supply was low for testing purposes, so we can’t look too far into these preliminary sales figures. Nevertheless, the product would be very attractive to a large consumer base. Many people enjoy taking a book with them during their train ride to work, or even when going out for coffee. A device that stores up to 200 books that weighs about half as much as a large one will surely be a hit. And as the iPod has proven, people don’t mind paying large premiums for convenience. Hopefully this product gets released in Australia (for a substantially reduced price, I might add), there’s nothing worse than waiting for a shipment of fresh books, with origins of Amazon’s gigantic warehouse to arrive on our shores. Paying the shipping fee isn’t all that flash either, I might add.

Filed under: consumers, internet — Pineapple

5 Comments


Amazonkindle: An iPod for Geeks…

Hype surrounding the Kindle, Amazon’s new portable e-book reader, has been fairly subdued in Australia, especially when compared to the latest iPod or iPhone. No conspiracy however, its release is just bad timing. With all that election coverage, mai…

Trackback by kwoff.com — November 27, 2007 @ 5:53 am

I’m torn about these, I love the idea, but I think I might be a purist when it comes to paper books.

You make an excellent point about the Amazon shipping rates though, they’ve always been a deal breaker for me in the past.

Comment by debtdieter — November 27, 2007 @ 8:53 am

Personally, I’m quite keen on a e-book reader. Reports say that Dymocks is releasing their own e-book reader before Christmas.

I wonder whether you have notice this trend regarding e-books….

Around several years ago (during the dot-com heyday), there was a lot of optimism about e-books. I remembered downloading one of the Rich Dad book in e-book format (Microsoft Reader format to be exact) from Amazon in 2000. Very soon, Amazon was selling e-books in Adobe and Microsoft Reader format. There was a lot of hype about the death of paper books at that time.

After quite some time (maybe a few years), Amazon stopped selling e-books. Quite recently, as I was browsing Amazon, I noticed that they no longer selling e-books versions of many physical books. I also notice that Microsoft’s Reader software was left to collect dust as the last major upgrade version was released in 2003. The same thing goes for Adobe’s reader software (they had an ebook reader software as well).

So, it appears to me that the ebook hype is dying and consigned to collect dust…

I can think of 2 reasons why the idea of ebook failed:

1. It’s very tiring on the eyes to read from the computer screen. No doubt we have PDA and LCD monitors, but they can’t be as easy on the eyes as physical paper. I heard from someone who told me that the human eye is not designed to look at something that emits light- it is designed to look at something that reflects light to the eyes. Well, that explains why…

2. Digital Rights Management (DRM)- as we all know, ebooks are just computer files that can be mass duplicated at zero cost. For physical books, it is far more costly to mass photocopy books. So, how are ebook publisher going to protect their profits by making ebooks difficult to copy i.e. copy-protect their ebooks? Both Microsoft Reader and Adobe Reader has complex DRM implementation that uses technology to cripple the usefulness of ebooks i.e. restrictions on copying, printing, etc. One programmer released a software to crack Microsoft Reader’s DRM. The problem with DRM is that while it protects publisher’s profit and copyright, they have the side-effect of imposing draconian inconvenience on people who buy ebooks. For example, what if you change your computer, reformat your hard-disk, own more than one computer? DRM technology trips up a lot of people.

Amazon’s ebook reader solves the first problem. It uses an e-ink technology that makes the ’screen’ no different from physical paper.

But the next question I have for Amazon’s Kindle is the DRM implementation. How restrictive is it?

I also believe that Amazon may have made one mistake: they priced Kindle too high. It has been said that HP does not make its money by selling printers. Rather, it sells printer below cost but recoup them by selling very expensive ink cartridges. The same goes for razor blade. I believe Kindle sold out because they were purchased by the first wave of early adopters. But unless Amazon penetrates the mass-market, e-books will still remain in the realm of the exotic. By pricing Kindle too high, it is an obstacle to mass-market penetration. Once they crack the mass-market, it will be much easy to recoup the loss/investment and make a lot of profits through the sale of e-books. This is because the marginal cost of ‘producing’ each e-book is zero i.e. average costs falls the more e-books got sold.

Comment by Contrarian Investors' Journal — November 27, 2007 @ 10:52 am

My understanding is that you purchase a book for your device, and your device only - it is completely non-transferable. Plus, it is kind of a pain to put ebooks of different formats (ie, something that you didn’t purchase from Amazon on it).

Also, it would help if it didn’t look like arse.

Comment by gooni — November 27, 2007 @ 8:12 pm

Nice comparison between the two product leaders here:
http://gizmodo.com/gadgets/ebook-faceoff/amazon-kindle-vs-sony-reader-sizemodo-and-interface-comparison-gallery-326590.php

Comment by Dan — November 27, 2007 @ 8:56 pm

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