Summary
Kindle 2 has evolved with many new advances. Some question if it will significantly impact the book-buying market or just fade away into the techno-junk yard. The fact is that the device is in demand and projected to sell $1.2 Billion by 2010. Competitors have taken notice and are entering the market. All of this at a time when the publishing industry is struggling. The winds are shifting and Amazon seems to be taking advantage of these shifting winds.
Analysis
The evolution of the Kindle arrived with the Kindle 2. Citigroup analyst Mark Mahaney projects Amazon will sell $1.2 billion by 2010 putting Amazon in the competitive realm of Google’s digital-books distribution platform. This is not a little deal. The new electronic reader has made a lot of people happy, and while it has its nay-sayers, many skeptics are starting to believe. The device has many notable features. Its sleek design is complimented with longer battery life. The light weight, rounded edges can be placed in a leather cover that slides into your briefcase or handbag for easy transport. And Kindle 2 is not just for books. You can download your New York Times or Wall Street Journal subscription, or a host of other papers from around the world at a touch of a button. Travelers may like the fact that if you are in the Galapagos, you can access information on the spot when you want it. And it’s fast. The screen of the new Kindle pops with its electronic ink, and page turning is a snap with the easy interface. But the best feature of all - the light weight and size mean you can carry so much in so little, so many places.. In a few years, we will likely be laughing at how archaic the device is. The images are ok but not bright and colorful. As fast as it is, I suspect it will be slow by future standards. But for today, the device is pretty darn nice and a lot better than lugging around 20 pounds of paper. So what is the future - many say that this is a fad that will lose its luster. The price is too high and laptops or multi-function devices will overtake readers. But sometimes focus wins. Like iTunes for music - Amazon wants the Kindle to do the same for the book library. And to many this makes sense. It is efficient and the costs will come down. There may not be an ipod effect because we are already seeing competitors enter the market. Sony very quickly and others coming soon. But demand is rising. Distribution and book supply is an interesting part of the equation. The Wall Street Journal reported that Stephen King made a deal to allow one of his novels to be sold on the Kindle on an exclusive basis - at least for a time. If this trend were to continue then controlling supply - going to digital and then to print - perhaps offering supply via print-on-demand could significantly change the nature of publishing. Amazon's focus on the book library and the evolution of Kindle comes at a time when the winds are changing in publishing. Kindle has made a positive impact on the early adopting market at a time when the publishing industry is struggling. At a time when Authors want something different, when readers are more technologically minded and when publishers must find a better way. This bright spot will shine even brighter if they can drive the price down to a lower, more affordable level and cast a wider net. As the broader market adopts, publishing houses will have to as well. (That said - I wonder if Kindle will take on music in the future?)
