New Amazon Ad Mocks Apple’s iPad

Retina comparison ad for Amazon Kindle

Amazon’s just started broadcasting a fun new ad on television that mocks the high price of Apple’s popular iPad tablets. (That’s a screenshot at the top of this post, and you can watch the whole ad at youtube.com/Kindle .) It’s a simple ad — in fact, the narrator says just 40 words. But its message is unmistakeable…

This is the iPad with Retina display. And this is the new Kindle Fire HD with an 8.9-inch display. Stunning HD, stunning HD. In fact, you may not be able to tell the difference.

But your wallet definitely can.

Retina price comparison ad for Amazon Kindle

It’s been fun to watch the reactions to Amazon’s ad around the web. “[I]t’s not beating around the bush this time,” jokes a technology blogger at Mashable. “The ad is a direct comparison with Apple’s iPad, claiming the two devices’ screens are virtually identical, while the price for the Kindle is much lower.” But in the comments to his post, some of his readers disagreed. ” OK, let’s compare the price of a BMX bike to that of a Corvette shall we?” wrote one. “If you’re looking to only read books, surf the web and watch movies, get a Kindle. If you want access to 10s of thousands of games and productivity tools including spreadsheet, presentation and Word-like apps, a camera, the ability to have video chat, movie editing, artistic and music creation apps as well as a large enough hard drive to handle all of those files. get an iPad…”

At a site called Mobile Mag, another blogger seemed to agree with that analysis, writing that that there are indeed more apps available for the iPad, it has a larger display, and its operating system is a lot more sophisticated. But even he seemed to enjoy the rivalry between the two top tablet makers. “Whether you are for the Kindle or against it, it is nice to see that someone is trying to take down the all-mighty Apple,” he writes.

But he added sardonically, “It’s a shame that we all can’t just be friends.”

Amazon’s Black Friday Deals are Already Here

Amazon.com shipping boxes

Amazon’s starting a new tradition that they’re calling “Black Friday Deals Week”. They’re offering big discounts right now of up to 50% on computers and accessories, for example, and even high-demand gift items like laptops and tablets. All the deals appear on a special “Black Friday Sales” web page that used to say “Countdown to Black Friday.” But now (according to Amazon), the magic day is already here!

“You shouldn’t have to stand in a long line to get a great deal,” Amazon explains – and they’re not just discounting their own products. “We’ve been searching for the best Black Friday deals everywhere – including Black Friday deals other stores are planning–so we can bring them to you even earlier.” There may be a limited supply of the discounted items, Amazon warns, “but we’ll add new ones throughout the day, every day, so you can skip the long lines and still save a bundle.” My only question: Does that make this “Black Monday”?

I already see discounts of “up to 50%” on some Panasonic cameras. (For example, there’s a model called the Lumix DMC-GH2KK which normally costs $999, and Amazon’s selling it for just $499.99.) There’s three other Panasonic cameras that have been discounted by $220, and the savings are even bigger in the laptop section. A 15.6 inch ASUS laptop now costs just $399 — a 33% discount from its usual price of $599.

And if you’ve ever wanted ASUS’s high-end “Republic of Gamers” laptop, this is your chance. They normally cost $1,699, but Amazon’s offering them at a $420 discount. Plus, there’s also big discounts on monitors. (For example, a 24-inch widescreen monitor from Viewscreen now costs just $179, a 52% discount from its usual price of $368.)

But the biggest surprise is that Amazon is discounting tablet computers that compete directly with the Kindle Fire. A 7-inch Samsung Galaxy Tab 2 now costs just $179 — a 28% discount from its usual price of $249 — and even the 10-inch model is being discounted $100 from its usual price of $399. Plus, there’s even a 23% discount on solar keyboard folio for the iPad! Does this make you wonder if Amazon’s holding back a big discount of their own for later in the week?

All year long I’ve been waiting for one specific piece of news: that Amazon’s finally going to offer a big discount on their Kindle Fire tablets during the week of Black Friday. Last year they surprised everyone with a 32% discount on the big-screen Kindle DX on Thanksgiving Day, and then on Black Friday also slashed the price on the “previous generation” of their Kindle Keyboard to just $79. And exactly one year before, in 2010, Amazon also made big cuts in the price of their “previous-generation” Kindle Keyboards to just $89. (This was at a time when the Kindle 3 cost $139.)

It drives me crazy, because I know Amazon’s planning a big “anchor” discount for this year’s Black Friday sales. But will it be a Kindle Fire tablet, a Kindle Paperwhite, or one of the older Kindle keyboards — or another model of the Kindle? I’d be happy if Amazon just brought back the Kindle Touch for one last hurrah.

But all we know for sure is that, according to Amazon, Black Friday “Deals Week” has already begun!


Check out Amazon’sspecial Black Friday Deals Week page at
tinyurl.com/AdvanceBlackFriday

Can the Kindle Catch the iPad?

Apple iPad in a hand

There’s an old saying that journalists love a horse race. Current events are more interesting when there’s one side that’s winning and one side that’s losing. That’s why blogs like to focus on the “war” between the iPad and Amazon’s own Kindle Fire tablets. Unfortunately, neither company releases their sales figures, but periodically you’ll get some good estimates from the “market analysts” at professional research firms.

And that’s what happened on Monday, when some surprising new numbers were released by the technology analysts at IDC. It’s a research firm that focuses specifically on consumer technology, and they’d made two interesting observations. In just three months — July, August, and September — they’re estimating that 27.8 million tablet computers were sold. And that means that nearly three tablets were sold this year for every two tablets that were sold in the same period in 2011.

Even if you just compare tablet sales to the previous three months, total tablet sales have now still increased by 6.7%. But what’s even more interesting is that Apple’s share of the tablet market is getting smaller, IDC notes. According to their calculations, more customers are now choosing instead to buy devices with the “Android” operating system — like Amazon’s Kindle Fire!

Of the 27.8 million tablets sold between July and September, 14 million of them were from Apple (all the various versions of the iPad). That barely gives Apple half of the new sales for tablet computers, with a share of 50.4% (versus 65.6% in the previous three months). The next-biggest vendor was Samsung, who sold 18.4% of the tablet computers bought between July and September. But Amazon’s share of the market during that same period was 9% — which was nearly double what it had been in the previous three months!

That may not sound like much, but Amazon waited until September, the last month in the quarter, before announcing their newest tablets. “Here’s why Amazon’s tablet share is going dramatically higher,” writes a blogger at ZDNet, noting that Amazon’s newest version of their Kindle Fire tablet can compete with the iPad on both price and features. He also notes that during September, Amazon was only selling their Kindle Fire HD tablets within the United States. But as Amazon expands their sales to the rest of the globe, their share of the market should increase.

Of course, there’s also another story behind Apple’s figures, according to the analysis by IDC. “We believe a sizeable percentage of consumers interested in buying an Apple tablet sat out the third quarter, in anticipation of an announcement about the new iPad mini. Now that the new Mini, and a fourth-generation full-sized iPad, are both shipping we expect Apple to have a very good quarter.” But they note that the iPad Mini is still relatively expensive at $329, which opens up a market opportunity for Amazon and their Kindle Fire tablets.

Now with the Christmas shopping season approaching, IDC reports that Apple’s missteps “leave plenty of room” for companies like Amazon to “build upon the success they achieved in the third quarter!”

Brand New Ads for Amazon’s Newest Kindle Fires!

Two children play with a touchscreen Kindle in Amazon's new TV ad

Amazon’s just released two slick new ads to promote their new Kindle Fire HD tablets. You can watch them all on YouTube at youtube.com/kindle — and they provide some interesting glimpses into the way Amazon is planning to sell these new devices — as well as Amazon’s own view of their role in the 21st century.

When I discovered these ads Thursday on YouTube, only 300 people had seen them. But soon Amazon should start broadcasting them on TV during prime-time commercial breaks, where they’ll presumably be seen by millions. So what does Amazon want to tell these people about their new Kindle Fire HD tablets — and about Amazon? Here’s a transcript of the text for their new ad for the Kindle Fire.


“We’re the people with the smile on the box. We’re the re-inventors of normal. We dream of making things that change your life, then disappear into your everyday. Of making the revolutionary routine.

“Our accomplishments are things you barely think about, but can’t imagine not having. Connecting your mouse to your front door was our moon landing. Creating Kindle — our four-minute mile. Customer reviews – our light bulb. And when we build you something new, you can expect everything to change a little more.

“Look around. What once seemed wildly impractical is now completely normal. And ‘normal’ just begs to be messed with.”

There’s some touching footage in the ads of a family receiving an enormous box from Amazon, and another one showing a small box from Amazon — presumably a new Kindle — arriving as just another package in a stack of mail. It shows children touching the screen of a Kindle, and even a woman who’s reading her Kindle while brushing her teeth, all to make the point that now Kindles are becoming part of our lives. And I thought Amazon came up with a great way to tout the fact that you don’t even need a light now to read on one of their new Kindles. They show someone relaxing in a hammock on their deck overlooking the city — enjoying their Kindle outside, at night, without even needing a reading lamp.

Amazon TV ad shows Kindle in a hammock on a city deck

But I wondered if, when Amazon created this ad, they were thinking of Steve Jobs. Apple’s legendary “Big Brother” ad in 1984 helped to launch the whole personal computing revolution, and Steve Jobs himself helped write Apple’s inspiring “Think Different” campaign (which showed footage of famous people as the narration explained that “they change things. They invent. They imagine… They create. They inspire. They push the human race forward…”) The grandiose comparisons created an aura of excitement around Apple’s new products, and now that they’re competing directly with the iPad, maybe Amazon’s now trying to claim some of that same gravitas for themselves. They’re basically equating the ability to shop online at Amazon.com with the first time humans walked on the moon!

Both the classic Apple ads and Amazon’s newest ads use “change” as their theme, trying to capture the excitement that a new technology can bring into the world. Interestingly, Amazon has also filmed a shorter version of the same ad that starts with the same first two sentence — “We’re the people with the smile on the box. We’re the re-inventors of normal…” — but then cuts straight to their point. “So when we bring you a new Kindle Fire, you should know that normal is going to change. Again.” Despite the fact that this ad is a full 30 seconds shorter, it still actually lists out more of the specific selling points for Amazon’s newest tablet. (“With an HD screen, HD camera, and dual-speaker Dolby sound, and 22 million movies, TV shows, songs, apps, books and more…”) And I thought the way that they ended this commercial made all of Amazon’s points with just four scrappy words

“Hey normal — take that!”

Amazon Offers $30 Discount on Kindle Fire!

Amazon's new Kindle Fire tablet

Amazon “just took the gloves off,” begins an article at C|Net. Only days after Barnes and Noble discounted their color touchscreen tablets — to just $199 — Amazon announced an even cheaper price for their own Kindle Fire tablets. “Save $30 with a Certified Refurbished Kindle Fire,” Amazon now advertises on the device’s web page. “Each Certified Refurbished Kindle Fire is tested, certified, and repackaged like new…

For a shortcut to the special offer, just point your computer’s web browser to tinyurl.com/169KindleFire (“Comes with the same one-year limited warranty as a brand-new Kindle Fire…” Amazon is reminding potential buyers.) “[T]his deal first went live on Saturday,” C|Net‘s reporter notes, “and I’ve been checking all weekend to make sure they’re still in stock.

“As of this morning, they are.”

C}Net’s reporter doesn’t even own a Kindle Fire tablet, but writes that “for $169 I’m extremely tempted — especially considering that Amazon backs it with a full one-year warranty, same as new Fires…For all intents and purposes, this refurbished Fire should be the same as a new one — just $30 less. Who’s in?”

I’ve been intrigued by the extra capabilities in Amazon’s color, touchscreen tablets, and yes, they’re more appealing now that the price is cheaper. But is the discount just a hint at an even more interesting possibility? Just hours after C|Net‘s article, a reporter at PC magazine asked an even more intriguing question. Was the Kindle Fire tablet just a beta release?

“Last summer, I was one of the first to write in detail about Amazon’s Kindle Fire, expected in the fall of 2011,” writes Tim Bajarin. “My sources on this were impeccable and early on I got a good idea of what Amazon had up its sleeves. However, during my discussion with my sources on this, one interesting tidbit came up that I have not written about until now…” He reports that even while Amazon was building their 7-inch Kindle tablet, they were already thinking about a much larger tablet, and writes that he now believes “that the larger tablet will be its marquee product and the hopeful cornerstone of its tablet strategy.”

He estimates a larger tablet would cost Amazon around $300 to build, which suggests its ultimate price could come in around $299. Besides the obvious popularity of the iPad, he considers other clues that Amazon’s first tablet device was basically just a trial run. (For example, there’s the odd placement for the on-off switch, and the way that the volume controls are currently available only on the screen of the device.) “In no way was Amazon being dishonest with its customers — rather, the opposite,” writes the reporter. “For a low price, Amazon delivered a solid tablet experience… To be truly fair, many people may never want a screen larger than seven inches because of the associated weight and bulk.”

But his article still left me very excited about the possibility of a larger Kindle Fire tablet. “[U]sers must realize that the Kindle Fire is an important stepping stone for Amazon. It has allowed the company to garner key consumer feedback so it can create an even better product that can compete with the iPad and, in the end, deliver an even better user experience for its customers.

“After all, as industry insiders joke, all first-generation products, whether hardware or software, are really ‘beta’ programs disguised as initial launches.”

And remember: you can still buy my newly-released word game for the Kindle, “Throw in the Vowel,” for just $1.99!

Price War on Black Friday — Kindle, Nook, and iPad

New Amazon Kindle gift wrapped

It’s on! Amazon’s Kindle is now engaged in a full-fledged price war on Black Friday with both the iPad and the Nook.

Amazon just slashed the price on their tablet-sized Kindle DX
to just $259, offering a massive 32% discount just before Black Friday. (Point your computer’s web browser to tinyurl.com/BlackFridayDX ) But Amazon started this war in September, by creating a new Kindle that they can sell for just $79. Now Barnes and Noble has announced that on Friday, they’ll release a special, limited-edition touchscreen Nook for just $79. That’ll match the price of Amazon’s cheapest Kindle (which does not have a touchscreen). “The Black Friday edition is the same as the regular $99 unit available in Barnes & Noble bookstores and online, except that the Black Friday edition has a white rim,” reports the Los Angeles Times.

And the Kobo is also slashing the prices on its touchscreen readers, to just $99. “That puts it at the same price as the Kindle Touch…” notes
a technology blogger at TechCrunch,
but it’s still more expensive than Friday’s new sales prices for the Nook. “At the normal price, it really is kind of a difficult choice…” writes the blogger, who’s been a big fan of the Kobo. “But would I recommend it over a $79 Nook? I can’t say I would, because the Nook is a solid device too.”

And meanwhile, the iPad is also joining in the competition. Apple’s promising a “one-day Apple Shopping Event” on their web site, but one Apple blogger also received a flyer with the actual prices, according to C|Net. Apple’s apparently cutting the cost of the Ipad 2 by up to $61 (while the iPod Touch will be discounted by up to $41, and MacBooks and iMacs more than $100 ). It seems like Apple’s really feeling the pressure to compete with the low price of Amazon’s $199 Kindle Fire tablets.

Black Friday is the biggest shopping day of the year in America, and every major shopping site seems to be fighting for a piece of the action. eBay is even creating real-world shopping spots for Black Friday outside major retail destinations in New York, San Francisco, and London, according to the Washington Post. eBay is establishing a “pop-up” presence so customers can buy eBay products while they’re out shopping (by scanning bar codes with their mobile phones!) And as the Washington Post noted, “Amazon opened an online Black Friday deals store on Nov. 1.

“It’s packing the site with offers each day to keep shoppers checking in over the Web, instead of heading to the mall!”

Click here for a 32% discount on the Kindle DX or point your computer’s web browser to tinyurl.com/BlackFridayDX

Click here for all of Amazon’s Kindles (starting at $79!)

Fighting Kindle Fire: Will Apple Release an iPad Mini?

Apple's Steve Jobs and the iPad vs Amazon's Kindle

There’s yet-another rumor about a new tablet device. Apple may launch a price war with Amazon’s Kindle Fire tablet — by releasing their own cheaper iPad tablet!

If the rumors are true, Apple would release the device in early 2012. Apparently a financial analyst went straight to the source — the manufacturers of tablet components in China and Taiwan. There, he heard “rumbling” about an “iPad mini,” according to the Apple Insider blog. “The ‘mini’ name doesn’t necessarily refer to the size of the device, he said, but a lower entry-level price.”

“‘We believe this lower priced iPad could be priced in the mid-to-high-$200 range,’ White wrote in a note to investors. ‘We expect this will be followed by a much more powerful, feature rich standard-priced iPad 3 in (the second quarter of 2012).'”

A lower price could boost sales around the world, in both developed and “developing” countries, according to the analyst. But it’s also a clear response to the new tablet from Amazon. The Kindle Fire, priced at just $199 put some real “price pressure” on the iPad (which sells for $499). It’s the newest battleground in a war between Apple and Amazon that’s been going on for the last four year.

In 2007, Steve Jobs was asked about the newly-released Kindle at Apple’s annual “Mac World” conference — and he predicted a rocky reception. “It doesn’t matter how good or bad the product is, the fact is that people don’t read any more,” Jobs told reporters. “40% of the people in the United States read one book or less last year. The whole conception is flawed at the top — because people don’t read anymore.”

Of course, at best that was always a “glass half empty” statement. (It also meant that 60 percent of Americans do read more than one book each year.) And according to a more-recent poll, now it’s only 25% of Americans who read one book or less each year, with 75% of Americans now reading more than one. (Plus, there’s apparently another 40% of Americans who every year read at least 11> books.) And the poll found even higher percentages for us people who own a digital reader. Each year a full 62% of us read at least 11 books, while 26% of us are reading more than 20 books!

In any case, the Kindle became an extremely successful product, and when Apple finally unveiled their iPad in 2010, Steve Jobs acknowledged that they’d include the ability to read ebooks. He conceded that Amazon “has done a great job of pioneering this… we’re going to stand on their shoulders for this.” But he still remained cold to the idea of a tablet that was smaller than the iPad — like the 7″ Kindle Fire
tablet which Amazon eventually introduced.

“One naturally thinks that a 7-inch screen offers 70% of the benefits of a 10-inch screen,” Jobs said one year ago in a conference call. “This is far from the truth. The screen measurements are diagonal so a 7-inch screen is only 45% as large as iPad’s 10-inch screen. The screens on these tablets are a bit smaller than the bottom half of the iPad’s display. This size isn’t sufficient to create great tablet apps in our opinion. While one could increase the resolution of the display for some of the difference, it is meaningless unless your tablet also includes sandpaper so that the user can sand down their fingers to a quarter of their present size.”

It’s fascinating to read Jobs’ remarks in the conference call — just one year before his death — in light of the rumors of an “iPad Mini” that’s coming in January. It may be that it will be just a cheaper version of the iPad (keeping its large 10-inch screen). But if they do make the iPad smaller, they’ll be defying the intense criticism that Jobs laid down just 12 months ago. “Apple has done extensive user testing on touch interfaces over many years and we really understand this stuff. There are clear limits of how close you can physically place elements on a screen before users cannot tap, flick or pinch them,” Jobs had said. “This is one of the key reasons we think the 10-inch size is the minimum size required to create great tablet apps.

“The 7-inch tablets are tweeners – too big to compete with an iPhone and too small to compete with an iPad.”

…our potential competitors are having a tough time coming close to iPad’s pricing – even with their far smaller and far less expensive screens…The proof of this will be in the pricing of our competitors’ products, which will likely offer less for more. These are among the reasons we think the current crop of 7-inch tablets are going to be DOA – dead on arrival.

Their manufacturers will learn the painful lessons, that their tablets are too small and increase the size next year, thereby abandoning customers and developers who jumped on the 7-inch bandwagon with an orphan product.

Amazon Remembers Steve Jobs

Amazon front page tribute after death of Steve Jobs

Today Amazon posted a memorial to Steve Jobs on the front page of Amazon.com. It read simply: Steve Jobs 1955 – 2011. When you clicked on the link, it went to Apple.com, which had posted the same words beside a picture of their co-founder.

All across the web today, people are remembering the man who helped change their lives. I sat down to write about Steve Jobs on my desktop computer — and realized that he’d actually helped invent the desktop computer. It’s a legend in Silicon Valley that’s probably worth remembering today. 35 years ago, at the age of 21, he’d teamed up with Steve Wozniak to sell home-built personal computers from Jobs’ garage.

Jobs didn’t design those first computers, but his personality helped launch the personal computer revolution. When he was 29 years old, he’d tried to lure Pepsi’s senior vice president of marketing to Apple. Unfortunately, the VP had already decided against accepting Jobs’ offer before he’d even sat down for their lunch. But he’d changed his mind after hearing a speech from the passionate young visionary. Jobs argued, “Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?”

Most people know the highlights of Jobs’ life. (That year was 1983, and the next year Apple would release their legendary Super Bowl commercial arguing that the new Macintosh computers would show people “why 1984 won’t be like [George Orwell’s] 1984.”) But by building Apple into a successful brand, Apple helped legitimize personal computers, proving there’s a market for “consumer technology.” And under Jobs’ leadership, they proved it again two decades later with new mobile products, which ultimately helped to pave the way for Amazon’s Kindle.

Today even my friends who use a PC are still sharing fond and grateful thoughts — along with nearly everybody else — and you can see signs everywhere of an almost global response. The best-selling book today on Amazon is Steve Jobs — a yet-to-be released biography by Walter Isaacson (a former CNN chairman and the managing editor of Time magazine). It’s also the third best-selling ebook in Amazon’s Kindle Store (and, presumably, it will also be available in Apple’s iBookStore.) Today the founder of Facebook even posted a personal statement about Steve. “Thanks for showing that what you build can change the world.” And 355,835 Facebook users clicked the “Like” icon to show they agreed.

In fact all across Facebook, nearly all my friends were posting their own reaction. “I tend to think of him as ‘Uncle Steve’,” wrote a friend of mine who worked at Pixar. “That is what at lot of us called him at Pixar while I was there, because Uncle Steve took care of us. And when I did see him around Pixar, more often than not he was smiling and seemed happy… Good job Uncle Steve.” My friend Tom — a motorcycling enthusiast — shared one of his favorite photos of Jobs riding a motorcycle. “Ride on, Steve,” Tom posted. “You’ll be missed…”

Steve Jobs on a motorcycle

But there’s a forgotten legend about Jobs — the “wilderness” period between 1985 and 1997 when he’d parted ways with Apple to start his own computer company. “Don’t let the noise of others’ opinions drown out your own inner voice,” Jobs once said. “And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.”

Job was determined to import the “garage start-up” feel to his new company, Next Computer. “He abandoned conventional corporate structures, instead making a ‘community’ with ‘members’ instead of employees,” remembers Wikipedia. Besides the open floor plans, everyone received exactly the same salary when they started — with regular raises and performance reviews — and “to foster openness, all employees had full access to the payroll.” Everyone at Next was paid a month in advance, and in one building the company even hosted temporary art exhibitions using an in-house curator!

Jobs later said his time outside of Apple was the best thing that happened to him — “The heaviness of being successful…replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.” If you ask a geek, they’ll tell you that Next Computer helped to popularize the “object-oriented programming” style of designing software which has since become an industry standard. But in the popular imagination, it’s Jobs’ excited ambition that you think of when you imagine the head of a cutting-edge technology company.

He gave good tradeshow, I told my girlfriend — and of course, Mac enthusiasts fondly remember Jobs’ return to Apple. Much of the technology developed at Next found its way into Apple’s computers, and
Apple’s sales increased as the company introduced a series of new devices like the iMac, the iPod, and the iPhone. Just yesterday morning I’d been writing a post about how Apple would respond to Amazon’s new Kindle Fire tablet. But the truth is, Jobs had been thinking about the answer for at least 15 years.

I believe Steve Jobs recognized that desktop computers were just the “first generation” of devices. If there’s a pattern after his return to Apple, it’s a focus on smaller and smaller devices. Jobs recognized that technology was going mobile, and was already positioning his company for the future. “Don’t you see what’s happening?” argues one technology site. “PC’s are 1990, man! Handheld devices are approaching the processing power of PCs – and everyone has at least one… It’s like Microsoft just cornered the market on Univacs.” And by 2007, Apple was already selling just as much recorded music as the entire chain of Target stores — and more recorded music than Amazon.

Today on Facebook, my friend Joab shared his favorite comment from the technology web site, Slashdot. “Bill Gates put a computer on every desk; Steve Jobs put a computer in every pocket, and in every purse.”
One of the most moving photos I saw today showed a San Francisco memorial service where a mourner held a picture of Steve Jobs…on their iPhone.

Steve Jobs on an iPhone

And my friend Jonathan posted a link to a new memorial in Boston. “Being the richest man in the cemetery doesn’t matter to me…” reads the inscribed quote from Jobs himself. “Going to bed at night saying we’ve done something wonderful…that’s what matters to me.”

Why Amazon Released a New Web-Based Reading App

Kindle Cloud Reader and Safari logo

It seemed like a big announcement. “For over two years, Amazon has been offering a wide selection of free Kindle reading apps that enable customers to ‘Buy Once, Read Everywhere’…” Amazon explained in a press release. “Today, Amazon.com announced Kindle Cloud Reader, its latest Kindle reading application that…enables customers to read Kindle books instantly using only their web browser – online or offline – with no downloading or installation required!”

But I discovered a big surprise when I tried to download it — I couldn’t! “Your web browser isn’t supported yet,” read a warning at read.amazon.com. I was using the Firefox web browser, but I got the same message when I tried accessing the page using Internet Explorer. “Download Chrome or Safari below,” Amazon’s web page suggested. And that’s when I realized exactly what Amazon was up to…

Their new application only works with three browsers — Apple’s Safari browser for the iPad, and Apple’s Safari browser for the Mac (and PC), plus the Chrome browser from Google, which works with both Mac and PC systems (and Linux and Chromebook). And as Amazon points out on the web site for their new “cloud reader,” the Safari browser is even built into the iPad’s operating system already!

Logo of browsers supported by Kindle Cloud Reader

It’s a way to sell ebooks directly to iPad owners, instead of having them make their purchases from Apple’s iBookstore. “Kindle Cloud Reader will be available on additional web browsers,” Amazon promised in their announcement today, “including Internet Explorer, Firefox, the BlackBerry PlayBook browser, and other mobile browsers, in the coming months.” But there’s obviously a good reason why Amazon started with the Apple products first.

“Apple wants companies to sell their content through its iTunes system, where it gets a 30 percent cut,” reports an article at ABC News. So new services like the Kindle Cloud Reader let Amazon sell directly to iPad owners. PC World called it an “uprising” against the Apple App Store, and it turns out Amazon’s not the only company using this tactic. “Other developers and publishers, such as The Financial Times, have chosen to abandon (or at least cripple) their iOS apps in order to keep more money from their sales and not split it with Apple.”

It’s easier to offer a web-based alternative when you’re a big retailer with lots of customers who’ve already given you their credit card information. For example, Wal-Mart wanted to offer online movies through a web site named Vudu, but they also discovered taht they weren’t able to send them to the iPad. The movies were being sent in the Flash format, which isn’t supported by Apple’s iPad. So today, like Amazon, Wal-Mart unveiled their own web-based application…for watching movies!

I loaded up Amazon’s cloud reader so I could take a screenshot, and it does look like it offers a nice reading experience.

Screenshot of Amazon Kindle Cloud Reader on Apple's Safari Browser

Amazon claims the book-purchasing capability in their new cloud reader is “To make it easy and seamless to discover new books.” But of course, it also makes it easier to buy those books, which is what Amazon’s really interested in!

Is Amazon Planning a “Mini” Kindle?

New Amazon small Android tablet Kindle Nano or Mini?

Tuesday the Kindle got some new competition! Barnes and Noble announced a new touch-screen version of the Nook. And there’s also a new touch-screen version of the Kobo ereader.

But is Amazon planning their own surprise for the next generation of the Kindle?

Each digital reader is fighting for an early lead against its competition. (Barnes and Noble announced their new Nook today, even though they won’t actually be able to ship them until June 10.) It’s possible that they’re worried Amazon will steal the market by releasing their own touch-screen tablet device soon. But I wonder if Amazon has another idea.

Today a technology analyst described the reactions you’d have if you held the new Nook. First you’d admire it’s form factor, he said. (Besides the power switch on the back, the device’s only button is a shortcut for reaching the home page — plus a “fast forward” page-turning bar.) And I noticed a few other mild improvements, like the ability to look up definitions just by touching a word. (Though the Nook still doesn’t have a text-to-speech feature.) The new Nook is one inch smaller than the Kindle, and it weighs one ounce less. But inevitably, the analyst notes, you’d start comparing it to the larger, full-featured tablets. And eventually you’d begin thinking that the new touch-screen Nook “shouldn’t really cost a lot because it’s basically an oversized drink coaster!”

The analyst’s conclusion? e-ink readers like the Nook and the Kindle will drop below $99 by the end of the year. But one way to do that, I’m thinking, is by making the Kindle smaller! It’s a possibility that’s at least implied by the latest rumors about Amazon’s plans for a tablet-sized device. Besides a full-sized tablet device, there’s also speculation that Amazon might also be working on a powerful but compact 7-inch version!

But I’d like to see Amazon release a “Kindle Mini” — about the size of a smartphone, but with a fully-functioning e-ink screen. I say this partly because I’ve already seen Amazon’s Kindle app on a smartphone-sized screen — and it works great! A smaller screen must refresh faster than the larger ones, and that also would extend the device’s battery life. And besides e-books, it could also store music and audio files (creating a nice alternative to an Apple iPod).

And the device could also play audiobooks — available through the Amazon-owned web site Audible.com. One technology blogger is already listing the advantages, noting that an even-smaller Kindle could be carried in a shirt pocket. And he’d like to see something like a “Kindle Nano” — modelled after Apple’s smallest music-playing device — which was actually optimized for audiobooks.

I’d had the same idea, but this blogger is so enthusiastic that he’s issued a plea to Amazon CEO Jeff Bezos. “Jeff, buddy, I know you’re out there. Give us our Kindle Nano.

“Don’t worry, we’ll buy it. You know we will.”

More Clues That Amazon is Building a Tablet


It’s the question that won’t go away – but some technology pundits think they see more clues. Just yesterday Amazon updated its “Kindle for Android” app so it works better on the tablet-shaped computers that compete with Apple’s iPad. “The update adds a new integrated shopping experience designed specifically for tablets,” reported PC Magazine, and Amazon has also added a new tablet-shaped layout for newspapers and magazines, “and other upgrades that take advantage of the larger screen.”

Now another article at PC Magazine asks, “Is Amazon preparing to launch an Android tablet?” And they cite the predictions of Peter Rojas, the co-founder of two of the top technology blogs — Gizmodo and Engadget. “It’s something of an open secret that Amazon is working on an Android tablet,” Rojas writes, “and I am 99% certain they are having Samsung build one for them.” He seems like he could have some inside information, especially since Gizmodo is one of the ten most-popular technology blogs on the Kindle, and one of the Kindle’s top 30 best-selling blogs.

Rojas believes Amazon has assembled everything they need to stock a tablet with popular content, including music downloads, video, and now even an app store. And easy shopping could help Amazon subsidize the costs of their new device, making them even cheaper to sell. “Amazon understands what’s at stake,” Rojas believes, adding “they have shown with the Kindle that they can produce a great product and then expertly tie that product into a content platform.” Rojas estimates that Amazons new tablet-sized device would be released as soon as this summer. “They have all the pieces in place, now we wait to see what they do with them.”

And PC Magazine suggests another interesting possibility. Last week Amazon released a cheaper, ad-supported version of the Kindle, even though “Amazon doesn’t need to lure people further; the Kindle is Amazon’s best-selling device of all time.” Their reporter suggests this may be the first stage of a plan to attract advertisers for other devices. “If Amazon subsidized a tablet with advertising, it might be able to sell the device at a cheaper, more competitive price.”

“It’s obvious from Amazon’s most recent moves that the company is moving toward Android,” the magazine concludes, “and everything else the company has done lately matches perfectly with a coming launch of a tablet device…. The tablet’s place is ready; now all Amazon needs is an actual product.”

It’s a theory that’s been echoed by others, including the creator of the bookmarking site InstaPaper. But there’s even support for an Amazon tablet within the community of technology experts. Last month, Forrester Research concluded that it was Amazon which had the best chance of competing with Apple’s iPad. (“[W]e see a market that’s ripe for disruption,” wrote analyst Sarah Rotman Epps, adding “by Amazon in particular.”) Surveys showed that 24% of consumers would consider purchasing an Amazon tablet, versus just 18% who said the same thing about Motorola. And 28% even said they’d prefer to buy a tablet-sized computer from Amazon rather than a phone company.

It an idea that seems to make a lot of sense. (If Apple insists on a cut of any e-book sales that happen on an IPad, Amazon could simply start selling their own competing tablet-sized device!) But it’s hard to predict the future, especially with different pundits offering so many exciting what-if scenarios. For example, Monday eWeek tracked down an analyst at Gartner who said he still prefers an even juicier rumor about how the next Kindle will be sold.

“It is more likely that Amazon will make the Kindle free to Amazon Prime subscribers and then make their money selling ebooks!”

Is Amazon building a new tablet-size Kindle?

Amazon iPad-sized tablet computer - Kindle DX

“I bet Amazon is developing their own tablet computer.”

That’s what technology columnist Andy Ihnatko wrote in an insightful new article in the Chicago Sun-Times last week. Amazon had just announced their new app store for smartphones and tablet devices running the Android operating system. Was it the first step towards a color, iPad-style multimedia computing device? “I don’t know that they’re doing this,” Ihnatko wrote. “But I do know that Amazon has all of the required pieces in place and that they…are clearly in the best position to challenge Apple and the iPad.”

And here’s some more possible evidence from within the last week.

  • Yesterday Amazon’s older tablet-sized Kindle DX suddenly went on sale at a 20% discount at Best Buy and Staples. Were they selling off their inventory before introducing a better model?

  • Thursday Amazon added a link in the Kindle’s built-in store for downloading audiobook files. Were they encouraging Kindle owners to explore the Kindle’s audio capabilities?

It’s starting to feel like a not-so-secret secret. “Amazon has been working on a multi-touch color device with Wi-Fi since at least early last year,” reported Matt Buchanan of Gizmodo, “if not earlier. It bought a multi-touch company called Touchco, and merged it with Lab126, the subsidiary that works on Kindles. Then it put out calls LCD specialists. Another name for a multi-touch color screen device? A tablet.” Buchanan also suggests that there’s not much money for Amazon to make selling apps — unless they’re really planning to sell a new device that runs them.

It’s a move which seems to make a lot of business sense. Right now the only real competition to the Kindle is the Nook — an Android-based tablet which offers a back-lit color screen. But just Friday Barnes and Noble confirmed big improvements are coming for the NOOK Color in April, which reportedly include e-mail, an app store, and even support for Flash animation and video. They’ve sold millions of the device in the last six months, according to the business magazine Fast Company. Are they pressuring Amazon to come out with their own color multimedia reader?

Watch closely, and it seems like Amazon is already putting into the place the very things that some pundits are recommending. “If a Kindle tablet had a ‘Recommend this thing I’m looking at right now’ button…that one feature would be a force-multiplier for the commercial impact of the whole platform,” Andy Ihnatko wrote. But of course, just recently Amazon added a “Before you go” feature to the Kindle 3. (“When you reach the end of the book, you can immediately…share a message about the book with your social network,” Amazon explained when they announced the upgrade last month.) If Amazon proves it can generate sales for content, “it wouldn’t take much for Amazon to legitimize itself as the friend to independent producers of books and music and video,” Ihnatko writes. Apple needed its iTunes store before people would buy the iPod, and their app store to sell the iPad. But now Amazon could be offering up some real competition.

Of course, maybe Amazon is just trying to spook Apple — to give them some leverage over Apple’s threat to demand royalties off any sales which happen in the apps run on Apple products. But it’s the question that just won’t go away, and it’s fascinating to read the speculation. “The Kindle engineering team has always had a knack for zeroing in on the critical function of the device and then refusing to get precious about anything that isn’t absolutely necessary to that goal…” Ihnatko points out. “Amazon keeps the Kindle on message. Although Amazon isn’t in the business of technological innovation, they have a proven track record for making inexpensive devices that people instinctively like.”

I’m enjoying the what-if scenarios because they brings out some great analysis, and whatever happens, this conversation is helpful for understanding the world today. And I loved how Ihnatko concluded his 2,800-word masterpiece — the last reason he offered for an iPad-style Kindle. “Amazon can succeed like Apple and maybe exceed Apple’s success in many places because it has the single greatest asset that any tech company can possibly have: It’s run by a crazy billionaire… Listen to me: Jeff Bezos has his own space program. I never tire of saying that. This is clearly not a man who’s intimidated by the scale of a project or the expense.

“If there’s a real chance of success, he’s willing to pour in the money, the focus and the motivation that are necessary for his people make it happen.”

Strong Reactions to Amazon’s New App Store

Amazon Android Store Angry Birds Rio app

Today Amazon opened a new app store for Android smartphones and tablet devices! And it’s also raising questions about whether Amazon is preparing to release their own iPad-sized Kindle that runs the Android operating system.

Amazon “did not respond to requests for comment” when contacted by the Wall Street Journal. But today the newspaper reported that industry observers “widely expect” Amazon to release a multimedia Kindle “that may run on Android.” And whatever they do next, Amazon has just entered into a high-stakes war with the largest players in the entire technology industry — including Apple, Google, and Microsoft. With or without an Android-based Kindle, at least one stock analyst already predicts that Amazon could be “a leader” here, based on how powerful they’ve already become in online shopping.

Amazon “has a key advantage over Google,” the Wall Street Journal reports — “untold millions of paying customers who have already provided critical credit-card information.” And Amazon attacked Google directly in their press release today when they announced the U.S. launch of their app store, the Journal observed. “In a thinly-veiled swipe at Google, Amazon noted that it will test all Android apps before they’re made available to consumers in its app store.” There’s over 150,000 apps in Google’s own store, the Journal notes, which makes it more difficult to test the apps individually, “a policy that came back to bite Google earlier this month when it was forced to remove dozens of malicious apps from its market.”

Obviously all these fun and useful “app”-style programs won’t run on the current-generation Kindles, but Amazon’s new store can sell its apps for all the current smartphones and tablets that run the Android operating system. And “the Amazon Appstore for Android” is already drawing some very positive reviews. Compared to Google’s “Android Market,” Amazon’s store “is much more pleasurable to navigate,” PC World reported, “immediately presenting you with a long list of popular free and paid apps.” They also point out that Amazon’s store has nearly 4,000 apps available on its very first day, and “What Amazon loses in quantity, it gains in quality…this is obvious when you run a search for popular apps like Angry Birds and Fruit Ninja. Clones, spam apps and irrelevant results abound in the Android Market, but Amazon’s store returns exactly what you’re looking for–and nothing more.”

“Our customers have told us that the sheer number of apps available can make it hard to find apps that are high quality and relevant to them,” Amazon announced today in their press release. And they’ve also added a special new feature called “Test Drive,” which actually lets you preview an app on your PC before downloading it to your phone.

The launch of the Android-phone app store has already provoked Apple into action. Friday Apple even filed a lawsuit against Amazon, trying to force them to stop using the term “app store.” It seems to me Apple is worried that an iPad-sized Kindle — complete with its own app store — could create some unwanted competition. (“We’ve asked Amazon not to copy the App Store name because it will confuse and mislead customers,” an Apple spokeswoman told Bloomberg News.) Friday Apple actually filed an official complaint in a federal courthouse in California, citing both “trademark infringement” and unfair trade practices (and requesting both an injunction on the use of the phrase “app store” and a legal award of damages.) Apple claims the U.S. Patent and Trademark Office had already approved an application for a trademark on the phrase “app store”.

But the approval of an application isn’t necessarily an approval of the trademark itself. Apple’s trademark application remains in an “opposition period” where other players in the industry — including Microsoft —
now file legal arguments for or against the granting of an official trademark. It looks like it’s going to be a brutal and intense legal struggle. On March 11, Microsoft even complained that Apple was cheating by using a smaller font to cram more words into their 31-page response. (“Under the rules, Apple’s brief cannot exceed 25 pages in its entirety…and must be printed in at least 11-point font…”)

All the legal and economic arguments are really just a distraction from the giddy fun of the launch of a new app store. You can access it at these shorter URLs

amazon.com/apps
amazon.com/appstore

And there seems to be a lot of excitement. This afternoon when I tried to install the Amazon Appstore on my smartphone, I received a “server busy” message for nearly half an hour! Amazon is giving away “Angry Birds Rio,” the newest version of a popular bird-shooting game for smartphones. (“Birds away!” reads Amazon’s description, promising “you’ll unleash an arsenal of angry bird artillery through 60 levels of cage-busting vengeance.”) They’re advertising it as an Amazon appstore exclusive, and it’s already the best-selling item in Amazon’s app store — but it’s not the only free game in the store. In fact, there’s hundreds of free apps in the store today, including free versions of all the following classic games.

Backgammon
Blackjack
Checkers
Chess
Connect 4
Solitaire
FreeCell
Go
Reversi
Sudoku
Word Search
Texas Hold ‘Em,
Tic Tac Toe

There’s even two more free Angry Birds games, plus Guitar Hero 5. (And there’s even a version of Pac-Man.) Of course, there’s non-game applications, like Oprah Mobile, E! Online, and Zagat to Go. But the most interesting feature is Amazon’s promise of very aggressive pricing if you’ll keep visiting their app store. The store’s current tagline?

“Get a great paid app for free every day.”

The Kindle, the iPad, and the future of ebooks!

Globe of the Earth

Is the Kindle changing our world? That’s a question I ask myself every day. But someone’s actually contacted 6,250 frequent book buyers to find out exactly what’s going on. Their research generated some startling statistics – and led to a disturbing prediction about the future. Yes, it’s a picture of our world as it is today – but it already contains the seeds for the world of books tomorrow.

26% of adult book buyers are already reading digital ebooks, according to the survey, while 34% more said they’d be willing to try them. In fact, only 14% swore they would never, ever read an ebook. The biggest thing keeping people away from the Kindle was probably the price, according to their analysis. After Amazon lowered the price of the Kindle, it saw a surge in four different age brackets. The percentage who reported a Kindle doubled between June and November for people between the ages of 18 and 24 (from 3.2% to 6.5%). By November, 8.5% of the adults between the ages of 35 and 44 now reported they owned a Kindle — and 9.6% of the adults older than 65!

But how is that affecting the world of books and the way people buy them? First, how many iPads are there in the world? 15 million (according to Apple). That’s in only nine months, since it was released in April. But ironically, when people buy an ebook for their iPad, 40% of the ebooks are bought through Amazon’s Kindle store! Apple doesn’t have a deal in place with Random House, according to Publisher’s Weekly, which means Apple’s iBookstore can’t offer popular titles like The Girl with the Dragon Tattoo, John Grisham’s The Confession, or even former president Bush’s autobiography, Decision Points. In fact, iPad owners bought just 29% of their ebooks from Apple’s iBookstore, according to a November survey by a research firm called the Codex Group.

But those researchers discovered an even more amazing statistic. Before buying the Kindle, shoppers bought 14% of their books from Amazon — but after they bought a Kindle, that number jumped to 37%! “It’s the most amazing retail share growth strategy I’ve ever seen,” says Peter Hildick-Smith, the research firm’s president (who previously had developed retail growth strategies for Wal-Mart.) “The increase in market share came entirely from book buyers’ added purchase of e-books,” Publisher’s Weekly noted, and yet amazingly, Amazon barely lost any of its share of the print book market! “While e-book purchases do not appear to be cannibalizing print sales at Amazon, the Kindle store has to be taking sales away from somewhere, and Hildick-Smith believes it is from bricks-and-mortar stores.”

And then he makes a prediction. Currently the vast majority of people discover their next book through a bookstore. (I even know several people who’ve reported browsing through the books at a bookstore — before downloading a digital version to their Kindle or Nook!) But if the Kindle’s popularity continues, it’s going to hurt some local bookstores — and that’s going to make it harder for publishers to advertise their newest books. “What has Hildick-Smith really worried, however, is whether publishers have concrete plans to protect their bookstore base.

“If not, they need to quickly find an alternative primary source for the discovery of new books, especially for nonfiction, debut, and midlist fiction titles that, at present, sell in much fewer numbers as e-books than fiction does….”

David Letterman, the iPad, and the Kindle

David letterman vs. the iPad and Kindle

I had to laugh. David Letterman showed off his new tablet-sized reading device on last night’s show — and he seemed confused about whether he’d bought an iPad or a Kindle!


LETTERMAN: For Christmas, I loaded up — I had one of them iPads, and they put a book in it. You know you can do that now?

PAUL SHAFFER: Oh, yeah. Sure…

LETTERMAN: And so I’ve been reading this book in this iPad thing, and I’m reading and I’m reading and I’m reading. And as you know, you don’t turn a page, in — when you’re reading on the — what do they call them, the Kindles or something?

PAUL SHAFFER: Yeah… They’ve got that, too, yeah. (Audience laughs)


Letterman was probably reading with a “Kindle for iPad” app. (Earlier this week, Amazon pointed out that it’s one of the top 10 best-selling apps among iPad owners.) But as their conversation went on, Paul Shaffer (who conduct’s the show’s band) gently tried to correct Letterman’s confusion as he explained how you turn pages.


LETTERMAN:And so you just — you just kind of do this with your finger.

PAUL SHAFFER: You flip that. Yeah.

LETTERMAN:And the thing’ll…

PAUL SHAFFER: On the iPad and the Kindle…


Letterman was playing up his reactions as a technology curmudgeon — but he was building up to a complaint that I’ve heard before. But the punch line of the bit turned out to be that it was bandleader Paul Shaffer who had the perfect answer


LETTERMAN: And I’m reading, and I realize: something’s wrong here. Something’s desperately wrong. There’s no page numbers on my book!

PAUL SHAFFER: Right. No, well, there can’t be. There can’t be, because you can change the font, and if you have a larger font, then you’re going to have fewer pages and therefore you can’t possibly commit to a page number because as you electronically alter the page you number, you are going to have to change as well the number of pages that you have at your disposal…(Audience applauds)

LETTERMAN: Thank you. Thank you, Steve Jobs.


Letterman has expressed skepticism about the iPad before. When the device was first released in April, he showed one to his audience, then joked “The radiation this thing gives off is incredible. You’re supposed to wear a lead apron when you operate it.” But it’s especially interesting in light of a new research study by J.P. Morgan. They determined that 40% of the people who own an iPad also own a Kindle — and that another 23% of them plan to buy one within the next 12 months!

The iPad won’t destroy the market for the Kindle — though I hope that all iPad owners aren’t as confused as David Letterman! But I would like to drop his comments into a time capsule. If books are someday replaced by digital readers, it’ll be worth remembering just how uncomfortable some people were with the change.


LETTERMAN: But see, and then you just — you just whisk it away like that, and then — but look. What do you see? Do you see a page number?

PAUL SHAFFER: No….

LETTERMAN: No. You don’t see no page number.

PAUL SHAFFER: No. There isn’t…

LETTERMAN: How do you know when you’re done, is what I want to know? Or if somebody – somebody asks you, are you reading the — the book? And I say yeah. “What page are you on?”

“I don’t know. I don’t know what page I’m on.” For example, this — I’m reading now the Alex Trebeck story, and I have no idea — uh…No, I can’t help you. Sorry.

David letterman vs. the iPad and Kindle

Who’s Using the Kindle?

A crowd of happy people

About eight million people have apparently received a new Kindle this year. So who are these people?

Fortunately, Amazon’s shared some very interesting stories from Kindle owners on the Kindle’s Facebook page. And one of the most fascinating responses came from Eddie R., who apparently leads a very adventurous life. He’d written to tell Amazon that “I do Third World missionary work, and in the past I had taken anywhere from 25 to 40 pounds of regular books as resource material. That has now been reduced due to my Kindle.”

But Eddie’s adventures with his Kindle were just beginning, since he also told Amazon that “I recently climbed Mt. Kilimanjaro in Tanzania, Africa. I took my Kindle with me, reading it all the way to the top, which was equal to carrying 100 books up the mountain with a very different weight factor. One of the real benefits is the length of time the battery stays charged 10-12 hours (without wifi) which enabled me to read every night (with a mountain climbing head lamp on), over a seven-day period. I am a very satisfied user!”

Of course, you don’t have to go to Africa to appreciate the Kindle. Barbie G. has a new baby, and she shared with Amazon that “In the first year with my 2nd Generation Kindle, I read 66 books. That was with two kids and a full-time job. It’s great to be able to read while feeding my baby her bottle…!” And a woman named Deborah A. loved how easy it is to turn pages with her Kindle. “The other day I was on the train and was knitting and reading… With a book I usually have to put down the knitting, turn the page, put something on the book to keep it open, then resume my knitting…and all of that I’d have to do for every couple of pages. The Kindle’s page turn bars/buttons on each side are perfect!”

But one of the most fascinating stories came from Vaughn R, who’d actually been part of one of the major news stories of 2010. “As a ‘survivor’ of the Carnival Splendor ‘cruise to nowhere’ I’d like to thank you for making the Kindle, which really helped turn my'”nightmare’ trip into a pleasure.” On its first day the California cruise ship had experienced a fire in its engine room, leaving the 3,299 passengers stranded on board 55 miles from the coastline without any electricity, air conditioning, or hot water, according to one news report. “While other passengers were haplessly ‘dead in the water’ due to the dead batteries on their iPads, my Kindle easily lasted the entire trip even though I used it nearly all day, every day.

“I was able to relax comfortably topside, reading in the bright sun, and enjoy my unexpected extended stay in the middle of the Pacific ocean while reading a large ‘stack’ of books which were loaded on my ultra-thin and light Kindle…”

Vaughn’s story got me wondering if anyone’s reading their Kindle while they’re stuck at an airport — and it turns out the answer is a big yes. “I was on that plane stuck for 12 hours on the tarmac at JFK yesterday,” one Kindle owner posted this afternoon in Amazon’s Kindle forum. “Thank goodness I had my Kindle!” And it turns out it’s a fairly common experience. “Recently, while waiting for my flight at the airport, a voice on a loudspeaker informed the passengers that our plane was delayed because of bad weather,” remembered Sandy B. on the Kindle’s Facebook page, “and it might be two hours before our flight departed.

“Two blissful hours of reading my Kindle sounded like a delicious escape from work, laundry, dishes and bookkeeping.” Instead of being upset about the delay, she wrote Amazon to tell them that she was actually happy about it. “Waiting is WONDERFUL with my Kindle!”

Probably my favorite comment came from a woman named Mary L., who e-mailed Amazon with the ultimate compliment about her Kindle: “It has literally ‘re-kindled’ my love of reading.” But another user thought the name had an even spicier origin. “I was on a ferry ride recently and watched with great amusement as a young man used his Kindle, as ‘chick-bait’. He sat near a group of attractive young women and began reading. It didn’t take more than a few seconds before one of them approached him to ask for a closer look. A man with a Kindle is far more interesting than a man with the latest cologne or the flashiest car… No wonder you called it ‘Kindle'”

This Monday Amazon’s CEO finally shared a story of his own, making the point that the Kindle doesn’t necessarily compete with the iPad. “We’re seeing that many of the people who are buying Kindles also own an LCD tablet. Customers report using their LCD tablets for games, movies, and web browsing and their Kindles for reading sessions.” Amazon isn’t feeling threatened by Apple’s products, and even bragged in their announcement about a customer who ordered an Apple Mac Mini on Christmas Eve — Friday, December 24, at 1:41 p.m. — and actually received in the same day, less than seven hours later in Woodinville, Washington. But Amazon is still beating Apple in the war of the ebooks, according to another detail in the announcement. Amazon’s three most popular ebooks over the last five weeks were John Grisham’s The Confession, Decision Points by George Bush, and Unbroken by Laura Hillenbrand — all books which are unavailable in Apple’s iBookstore. And Amazon CEO Jeff Bezos still had one more story to tell, with a very happy ending.

“On Christmas Day, more people turned on new Kindles for the first time, downloaded more Kindle Buy Once, Read Everywhere apps, and purchased more Kindle books than on any other day in history!”

8 Million New Kindle Owners after Christmas?

Picture of the new smaller, black $139 Amazon Wi-Fi Kindle

I’d been expecting there was going to be a lot of new Kindle owners after Christmas, but now a business news service is backing me up. By the end of the year, Amazon will have sold more than 8 million Kindles, according to new statistics from Bloomberg. And it’s not just a prediction. They’re reporting that number came from “two people who are aware of the company’s sales projections.”

I have to wonder if this is a deliberate leak by Amazon. Amazon’s never shared their sales figures before, until Monday, when they finally revealed they’d sold “millions” of Kindles — just in the previous 73 days! It must’ve been hard keeping that secret, while Apple continued bragging about how fast their were selling their iPads. But in fact, Apple only sold 4.19 million iPads between July and September, and for the rest of the year, Bloomberg’s analyst has predicted that Apple will sell only 5 million more…

I’d like to give a big welcome to all the new Kindle owners. (In a few days, I’ll be publishing a few of my best new tricks for the Kindle!) And if you’re wondering if you should’ve bought an iPad instead — don’t. The selection of books is much smaller in Apple’s store, according to Publisher’s Weekly. “Want an e-book version of the nation’s bestselling nonfiction hardcovers? Don’t bother looking on the iBookstore. Apple still hasn’t struck a deal with Random House, publisher of current hits like George W. Bush’s Decision Points and Laura Hillenbrand’s Unbroken. For now, iPad users who want to get any of Random House’s bestsellers — which also include John Grisham’s The Confession and Stieg Larsson’s The Girl with the Dragon Tattoo — need to visit Apple’s App Store and download the free application for the Kindle or the Nook.”

Publisher’s Weekly notes that Apple offers just 130,000 books in its iBookstore, vs. the 300,000 applications in its app store — and you can’t even access Apple’s iBookstore from your computer, but only from a mobile device!

Maybe there’s a “stealth revolution” underway, and the Kindle’s popularity is Amazon’s own delicious secret. But if that’s true, then it’s got me curious. What kind of Kindles are people actually buying? I decided to ask a friend who publishes a popular technology site, and they agreed to anonymously share the break-down of their own sales for the last 30 days. They’d sold 90 Kindles — more than $13,000 worth — but eighteen of them were 2nd-generation Kindles. (Which is exactly 20%…) Almost two-thirds of their sales were for the new, cheaper WiFi Kindle — but that’s probably because Wi-Fi Kindles were specifically mentioned in Amazon’s ads. (“The All-New Kindle. Built-in Wi-Fi. Only $139…”) Since they’re only available in the new black color, this suggests we may start seeing fewer people in 2011 who are still carrying around the old-fashioned white Kindles.

Although maybe not. My friend’s web site also sold 15 of the new Kindle model that ships with both Wi-Fi and 3G connectivity — and only three buyers requested the graphite-colored Kindle. With this model there’s a choice of colors, and given a choice, 80% of the shoppers apparently went with a traditional white Kindle. And if you’re a new Kindle owner, remember. If you wrap your Kindle in a rubber “skin” you can change it to other colors, like blue or pink!

Pink Kindle skin gift cover

If I could send one message to all the new Kindle owners, it would be this: that owning a Kindle is a lot of fun. And remember that the Kindle is surprisingly flexible. Besides ebooks there’s also a great selection of games for the Kindle, and you can even use it to read your favorite newspapers and magazines. (Not to mention some great Kindle blogs!) So to all the new Kindle owners: happy holidays

And happy Kindle-ing!

Kindle vs Nook: More Surprising Sales Statistics

Barnes and Noble Nook
Amazon made a stunning announcement Tuesday morning. “In just the first 73 days of this holiday quarter, we’ve already sold millions of our all-new Kindles..”

Kindle owners were the first to get the news, since Amazon quietly posted it online in a forum for Kindle owners. “Thank you, Kindle customers…” the announcement began, adding that “in the last 73 days, readers have purchased more Kindles than we sold during all of 2009.” Their post was just six sentences long, but it seemed bigger in scope — and big on gratitude. Amazon’s Kindle Team said they were “energized” (and grateful) for “the overwhelming customer response,” and the message ended with the words “Thank you for being a Kindle customer.”

It’s fun watching the reactions from skeptical technology sites. “It’s raining Kindles,” wrote The Motley Fool. They’ve complained in the past Amazon never revealed the actual number of Kindles sold, saying it’s “like having a discussion with a kindergartner or a politician. They all tell you what they think you want to hear…but lack the details you really need to know before drawing your own conclusion.”

Even then, Amazon’s announcement Tuesday didn’t completely satisfy the site. “Amazon.com still isn’t coming clean with how many Kindle e-book readers it’s selling, but at least now we know that it will be in the ‘millions’ this holiday quarter alone.” The Motley Fool called Amazon’s sales figure “impressive,” and attributed it to the better deals available. “[I]t really wasn’t until this year’s price war — driving the price of the Kindle to as low as $139 — that it all began coming together. Book lovers that figured it would take several dozens of e-book purchases to cover the cost of the $399 model can now justify the lower break-even point on a $139 reader.”

Information Week supplied some crucial context for Amazon’s announcement. Just last week, Barnes and Noble revealed it was selling its color Nooks at a rate of 18,000 a day. Publisher’s Weekly had declared the company’s CEO as their person of the year, and in a profile, he’d revealed that every four or five days, Barnes and Noble loaded up another 747 aircraft just to fly in more Nooks from China. That would come out to 1,314,000 Nooks if it lasted for 73 days — two Nooks for every three Kindles sold — but the Nook Color has only been available for less than 7 weeks.

It’s been 47 days since its release on October 28, which works out to just 846,000 color Nooks sold so far (assuming their sales rate remained constant). “All this vague one-upmanship, doesn’t answer the question on most analysts’ minds,” complains Information Week, “which is how well the Kindle is selling compared to the Apple iPad.” But at least now we have a number to work with for the number of Kindle owners in the world. We now know that there are at least two million new Kindles firing up out there in the wild.

The devil is in the details, and C|Net found something even more important that I’d missed. Amazon’s CEO is predicting that ebooks won’t start outselling all printed books for a while — saying ebooks won’t even surpass the sales of paperback books until the summer of 2011. And as far as ebooks outselling all printed books, he’s predicting it will finally happen “by 2012.”

Will eBooks Change a Bookstore Tradition?

Stephen King autograph on a Kindle

“Writers will begin signing e-books,” a headline promises at the web site TechEye. Er, wait a minute — then where are the writers going to put the pen?

But it turns out there’s a new technology — and also some other possibilities that I hadn’t thought of. For example, one PR professional suggested that instead of a signature, authors at a book-signing could pose for a digital photograph with all their fans who waited in line. (And yes, you could e-mail that photograph to your Kindle, where you could then access it from your home page.) And the photos could also be uploaded to Facebook or posted on weblogs — or even uploaded to your cell phone, so it’s next to the apps where you’re reading the author’s ebook!

Of course, it’s also possible to use a pen-shaped mouse to draw a digital signature onto the photograph, so the fans could still get their autograph after all. But according to TechEye, there’s an even more interesting possibility. A developer named Tom Waters teamed up with an IT contractor for NASA to create an application called “autography,” which captures a writer’s autograph on a digital blank page so that it can be inserted directly into ebooks! This could spread a new tradition throughout the world of ebooks, according to an insider for the publishing industry who was interviewed by the web site. “Autography has initially been developed as a iPad app which works with the iBookstore, although Waters says the final service will be device and format agnostic…”

This might be a better way to handle ebooks when authors are promoting their new releases at a bookstore. (I’ve already collected several stories about fans who asked the authors to simply sign the outside of their Kindles.) Last year at a Manhattan bookstore, this happened when humorist David Sedaris was promoting a new collection of essays called “When You Are Engulfed in Flames” — and he came up with the perfect inscription. “Mr. Sedaris, in mock horror, wrote, ‘This bespells doom’,” the New York Times reported, adding that the event “may have offered a glimpse of the future.” When the Times contacted Sedaris later, the author revealed that actually, he’d already signed “at least five” different Kindles — as well as “a fair number of iPods…for audio book listeners!”

William Gibson, the famous science fiction author, also experienced the same phenomenon — during a special book-signing at the Microsoft campus. (Gibson acknowledged to the fan that this was a first, and then autographed their Kindle with big, black letters using a permanent marker.) Later, the fan discovered that William Gibson was also talking about the incident on Twitter. “Signed very first Kindle at Microsoft,” Gibson announced to his fans. “Actually, *touched* very first Kindle.

“Appealing unit, IMO,” added the science fiction writer.

Gibson’s new book ultimately became Amazon’s best-selling science fiction book in September, and it’s possible that the extra publicity helped. It’s fun to think about this as two worlds colliding — that it’s the virtual world of ebooks confronting the real-world physicality of printed books (and their authors). But while this ritual may be undergoing simple changes, it could offer hints about something larger.

One fan even confessed to the New York Times that she actually felt embarrassed as she’d approached the author, because “if you’re asking for your Kindle to be signed, you’re taking the bookstore out of the process!”

The Presidents and the Kindle

President Abraham Lincoln reading a book
I remember the day when I almost met President Clinton. He was helping a school in my town install the cables for internet access in 1996 — along with Al Gore — and I was covering the event for a local alternative newsweekly. Some of the volunteers that day wore t-shirts that said “I connected our kids to the future.” And in the teacher’s lounge, I’d found the left-behind remains of sandwich from a local deli, with the word “president” written on a plastic cover. (It was left behind under a sign which read “Your mother doesn’t work here, so clean up after yourself!”)

It was a weird moment, when I realized that when there’s a new technology, we’re all “pioneering” our way towards it together. And 14 years later, when that future finally arrived, I feel like we’d ended up doing it again, moving together as an invisible group, this time towards a new reading technology. Shortly after the inauguration of President Obama, CNN reported that former President Bush had returned to Texas, where he was “meeting the neighbors, making trips to the hardware store, and catching up on some reading via a Kindle.” That same month, former vice president Dick Cheney revealed he also had a Kindle, and a few weeks ago, even Laura Bush told an interviewer that she has one too.

But it’s not just that the Kindle is being used by a handful of White House occupants. After receiving a $7 million advance, former president Bush released his new autobiography on Tuesday. By the end of its first day — counting pre-orders — he’d sold 220,000 copies and delivered nearly $4 million in book sales. But the former president also discovered that nearly 23% of his readers were buying it as an ebook!

A new world may be emerging — an accidental community of early adopters — since the publisher’s spokesman said the figures demonstrate the “rapid growth” of the ebook market. (I calculate that that’s over half a million dollars worth of ebooks sold in a single day!) The publisher also revealed that it was their highest one-day sales in six years — since they’d published the autobiography of former president Bill Clinton. But there’s also something significant about the fact that even Clinton’s biography is now available as a Kindle ebook, along with several by Ronald Reagan, and seven books by Jimmy Carter…

And tomorrow even president Obama is releasing a new book — and has also decided to make it available on the Kindle. It’s a children’s book called Of Thee I Sing: A Letter to my Daughters, and it’s got its own perspective on the way America has changed. It looks back to past presidents like George Washington and Abraham Lincoln, but also ordinary citizens who made a difference, likeMartin Luther King Jr., Helen Keller, Georgia O’Keefe, and Jackie Robinson. It’s fun to think that this will be the first generation of children who may be reading these classic stories of American history on a Kindle!

The world keeps on changing, both in big ways and in small. (One political blog reported that President Bush now seems more interested in his iPad than his Kindle, and according to his wife Laura, he’s “constantly” playing the Scrabble app.) But 10 years ago, The Washington Post once reported, there was an even bigger challenge confronting ebook author Barack Obama: obscurity! “In the summer of 2000 when he flew from Chicago to Los Angeles for the Democratic convention and no one knew him, his credit card bounced, and he left after a forlorn day hanging out as an unimportant face lost in the power-lusting crowd.”

It all goes to show that a lot can change in 10 years — both for politicians, as well as the rest of us!

Why Consumer Reports Loves the Kindle

Consumer Reports buying guide cover

There’s been some excitement in Amazon’s Kindle forum. Consumer Reports magazine just chose the Kindle as the best e-reader in an early December issue. But I discovered that there’s even more good news for Amazon. At my local bookstore, I scoured the magazine rack, and found an even more positive comparison in the Consumer Reports Electronics Buying Guide!

And the Kindle had already won high marks in their special “Best Products of the Year” issue in November. It was the Kindle — and not the Nook or the iPad — which was listed in a special section called “Great Gifts for $250 and Under.” Consumer Reports wrote enthusiastically that the Kindle “offers crisp text, fine performance, simple controls, and a pleasurable reading experience.” It was just a short blurb — but the Electronics Buying Guide offered a very detailed comparison.

It costs a whopping $10.99 for that special Winter issue — but watch out. There’s a funny typo in its section on digital readers. They warn readers that prices typically range from $1150 to $500. Er, I’ve never seen an e-reader that costs $1150!

The guide starts with a section for people who have never seen a digital reader before, but are considering whether to buy one. (The magazine gave low marks to the experience of browsing the web on all the digital readers, calling them “very limited” and “virtually unusable”.) And they also warn shoppers to “be wary” of a reader which can’t connect to a wireless 3G network. But their biggest negative comment about the Kindle is just about file formats. (“With Kindles…Word documents and photos in JPEG format must be sent to Amazon for conversion before than can be loaded.”)

You have to flip towards the back of the magazine to find their detailed comparison table, where the Kindle was ultimately declared the winner. Consumer Reports named the Kindle DX “Best for Reading Lots of Textbooks with Diagrams,” while the newer Kindle 3G won the other honor — “Best for Most People”. Ultimately the Kindle came up with an overall score of 63 (or 65, for the larger Kindle DX). In fact, the Nook came in #3, racking up a score of just 52. In the number two position was the Sony Reader, which scored a 60, or a 56 for the smaller version. (Also tested were the BeBook, the iRex, and the Alluratek Libre.)

Of all the readers that they compared, only the Kindle received their special endorsements. The Kindle DX was listed as “Recommended,” while the Kindle 3G was awarded a “Best Buy” check mark. The Kindle scored the best for “readability” — receiving the second-highest possible score of “very good” (while the Nook’s readability was a rank lower, rated as “good” — along with every other reader.) The testers defined “readability” as which device is the easiest on your eyes.

In fact, the only two categories where the Nook scored higher than the Kindle were in “file support” and “versatility” (defined as the number of features available).The Kindle also bested the Nook in ease of navigation, page turning, and responsiveness. The Nook’s lowest score was for responsiveness — how quickly the screen becomes functional after powering up or returning from sleep mode. The Nook received the second-lowest possible ranking there, while both versions of the Kindle scored a rank higher — a middle rating of “good.” The reviewers also noted that for some users, the Kindle’s text-to-speech features could also come in handy. (They specifically mention the sight-impaired, but if you’re taking a long car trip, the Kindle could even read to you from the passenger seat!)

It’s a big deal, because Consumer Reports has been around since 1936, and I’ve always thought of it as one of the most well-respect consumer organizations. Their annual budget for testing is $21 million, according to Wikipedia.

But ironically, you still can’t read Consumer Reports on your Kindle!

Is Amazon Misleading Us About ebooks Outselling Print Books?

Is Amazon misleading us about ebooks outselling printed books

Last week Amazon made another announcement with disturbing implications. Amazon revealed that their Kindle ebook sales “continue to overtake” the sale of print books on Amazon.com. But in the next few sentences, Amazon added some big disclaimers. So the truth is apparently that they’re not selling more ebooks than printed books.

Amazon issued a press release announcing that over the previous 30 days, they’d sold more Kindle ebooks than printed books “for the top 10, 25, 100, and 1,000 bestselling books on Amazon.com.” But it seems like an odd distinction, almost like they’re playing a game with the numbers. In the universe of all books sold, just how small is the piece that’s occupied by this month’s best-sellers? When you walk into a bookstore, how many of the books around you aren’t in the top 1,000? I’d guess it’s an awful lot — at least more than half.

And that points to the biggest quirk in Amazon’s calculation. Wikipedia notes that Amazon’s own list of best-sellers “tends to favor hardcover, more expensive books, where the shipping charge is a smaller percentage of the overall purchase price or is sometimes free, and which tend to be more deeply discounted than paperbacks.” In fact, best-selling books are often new books — which are first available only in hardcover editions. So Amazon isn’t talking about a typical sample of all books that are sold; instead they’re sampling an unusual subset where hardcover books are still very much over-represented.

In the real world, hardcover books represented just 23% of all books sold last year, according to Nielsen’s Bookscan service. But Amazon used this anomaly to announce that ebooks in their Kindle store were outselling all those expensive hardcover books. In July one analyst did some quick calculations based on Amazon’s other public statements, and concluded that over 70% of the books Amazon sells were still printed books. And since Amazon sells more ebooks than just about anybody, he reports that sales still remain very strong for the printed book, with Amazon’s ebook sales only representing “the equivalent of 6% of the total print book market.”

I’d publicized the analyst’s conclusions, and it ended up getting some attention from an MIT technology blog and the popular web site TechDirt. I half-wondered if Amazon’s latest press release was an attempt to address their skepticism by creating a new announcement where ebooks now seem to be finally outselling books — when they actually aren’t. After all, if Amazon really were selling more ebooks than printed books — across the board — obviously they would’ve announced that instead. (And how else could ebook sales “continue to overtake” print book sales? They’ve either passed them, or they haven’t!)

Amazon’s press release quotes Steve Kessel, the Senior Vice President for the Kindle, saying that Amazon’s ebooks “are also outselling print books for the top 25, 100, and 1,000 bestsellers — it’s across the board,” though apparently “across the board” actually means “the small portion of the board which contains expensive and pre-dominantly hardcover best-sellers.” But I also noticed their calculation specified sales to “Amazon customers” rather than “Kindle owners.” This seems to confirm reports earlier this month that 1 in 5 people buying ebooks from Amazon’s Kindle store don’t actually own a Kindle (according to a new technology survey). So Amazon may be selling more ebook versions of (expensive and pre-dominantly hardcover) best-selling books — but a lot of those are only being read on iPads and iPhones.

And Amazon also specified that their statistic was for “the last 30 days” — which could represent a one-time spike in the month after Amazon released the cheapest Kindle ever. I know I’m being cynical, but at least I’m not the only one. A reporter at Barron’s financial blog complained that Amazon’s announcement was “completely lacking in informative quantitative detail.” And a columnist at PC World notes it’s not the first time their statistics have made a strange comparison.


“Amazon has a tradition of playing these stupid mind games with the press… Amazon really took the cake for its silly numbers game last December when the company announced it had sold enough 8 gigabyte iPods during the holiday season to play 422 years of continuous music. The company also claimed it had sold enough Blu-ray disc players during the 2009 holiday sales blitz that if you lined up all the players side-by-side they would stretch for more than 27 miles. Huh?

He suggests that Amazon is guilty of foisting on the public “some random statistic that would be more at home in the Guinness Book of World Records than a quarterly sales announcement. ‘Hey look, we sold more Kindles in Q2 FY2010 than the weight of three pregnant Kenyan elephants.’ Good for you. Oh, did I mention that Amazon said it sold more Kindle books than print books for the top 10, 25, 100, and 1,000 bestselling books on Amazon.com during the past 30 days? Wonder what that actually means?

“Me, too.”

Kindle Struggles on College Campuses?

College student cap and gown

Here’s another interesting statistic: 74% of college students still prefer printed books over ebooks.

The National Association of College Stores performed a new study through their “OnCampus Research” division, contacting 627 students during the month of October. 87% of them hadn’t purchased a single ebook within the last three months. And of the ones who did, more than half of them — a whopping 56% — said their main reason was to read material that was required for a course. Plus, the study also found some bad news for the Kindle: 77% of those students who bought an ebook said they read ebooks on their laptop or Netbook. (Followed by another 30% who said they read their ebooks on a desktop computer.)

In fact, only 8% of college students even own a digital reader, according to the study. And when asked, nearly 60% of the remainder said they had no plans to buy one. (Though I guess you could read that as “more than 40% of the students” expected to buy one soon…) “We wanted to cut through all the speculation and put hard numbers to it,” said research manager Elizabeth Riddle. She announced that the college-age students are “definitely a growth opportunity for companies providing digital education products,” adding that the death of the printed book, “at least on campus, has been greatly exaggerated, and that dedicated e-readers have a way to go before they catch on…”

Publisher’s Weekly apparently contacted the authors of the study, since they reported a breakdown of the study’s results in even more detail. It shows that for those students using a dedicated reading device, the second most-popular handheld device is the iPhone, which comes in at 23.9%. But according to their report, the most popular device is still the Kindle, with a 31.4% share, split evenly between the Kindle 3 and the Kindle DX combined. The Nook comes in at 21.6%

In fact, if I’m reading those statistics correctly, there’s been an amazing spike in the popularity of the Kindle. The Kindle 3 has only been on the market for two months, and it’s already claimed as much of the market share as the earlier Kindle DX (which was released more than a year earlier!) Maybe for college students, a lower price brings a huge boost in sales. Or maybe the Kindle has more “buzz” after an extra year on the market.

But this was my favorite line of the study. “A tablet computer, such as an iPad, was the least common reading device used by students, selected by only 4% of respondents.” Out of all the ways to read an ebook, an iPad is one of the most expensive. Maybe college students are passing it over for a stack of used paperback books!

The Secrets Behind Amazon’s Quarterly Report

Amazon 3Q stock chart - third quarter of 2010

It’s a special time of year — when major corporations finally reveal the secret numbers about how their companies performed over the previous 13 weeks. Yesterday Amazon released their own quarterly earnings reports, right in the middle of a week of rumors and predictions about tablet-sized reading devices. Amazon reminded investors that the newest generation of Kindles are “the fastest-selling Kindles of all time.” And they’re also the #1 best-selling product on Amazon — both in America and Britain.

“A sour economy failed to slow down Amazon.com,” reported the New York TImes, “as the company’s net sales climbed 39 percent in the third quarter.” But what’s more interesting is what they didn’t say. A financial analyst in San Francisco believes that this year, Amazon will earn a whopping $2.8 billion from their Kindles and ebook purchases, according to Bloomberg news. And within two years, that number could nearly double, to $5.3 billion in 2012!

That’d break down to the equivalent of 15 million Kindles sold in 2010, and 30 million in 2012 — though some of the profits obviously are coming from ebook sales. But what’s even more interesting is the analyst’s second comment. Kindle users “will not only continue buying more e-books, but also subscriptions, accessories, [and] hardware warranties,” he predicted, saying eventually the devices would be used to deliver music and even full-motion video. Will Amazon eventually open up new stores for Kindle music and Kindle video?

And that’s where the first rumor gets a lot more interesting. While Amazon was announcing their quarterly results, C|Net also reported that this Tuesday, Barnes and Noble will reveal a digital reader with a full-color touch-screen — the “Nook Color,” priced at $249. “It’s a big step ahead, instead of chasing Amazon,” their source explained, adding that it’d be based on Google’s popular Android operating system, and would sell for half the price of Apple’s tablet-sized iPad. It’d ship with a 7-inch color screen — which is a magic dimension size that has already been generating some controversy.

“One naturally thinks that a seven-inch screen would offer 70 percent of the benefits of a 10-inch screen,” Apple’s Steve Jobs told analysts Tuesday when announcing their own quarterly earnings. “Unfortunately, this is far from the truth. The screen measurements are diagonal, so that a seven-inch screen is only 45 percent as large as iPad’s 10-inch screen. You heard me right: just 45 percent as large…
The seven-inch tablets are tweeners: too big to compete with a smartphone, and too small to compete with an iPad.”

Jobs insisted that his comments were based on Apple’s “extensive user testing on touch interfaces over many years…we really understand this stuff.” But the truth probably lurks somewhere between the lines. Reading devices have proven to be so popular, that none of these companies want to get left behind. It’s not just that Amazon’s Kindle-related profits are probably already in the billions of dollars. It’s that selling us millions of Kindles means we’ll keep using Amazon’s store for our future purchases — of e-books today, but maybe also for music-and-video purchases in the future. So while I’m casually reading my e-books, major corporations are already fighting the war of tablet-sized reading devices.

And honestly, I’m not sure how I feel about all this speculation. I just worry that someday we’ll look back with a fond nostalgia to the Kindle 1. “It didn’t offer full-motion color video on high-definition screen,” we’ll say.

“But it was really great for reading books.”

eBook War: Amazon vs. Apple's iBookstore

Apple's Steve Jobs and the iPad vs Amazon's Kindle

I’m fascinated by the Kindle’s competition with the iPad — and Apple’s rival approach to the marketing of ebooks. For example, yesterday Apple released a quarterly report showing they’d set new records. Over 92 days, they sold 14.1 million iPhones, 9.05 million iPods, 3.89 million Mac computers, and 4.19 million iPads. Their stock hit an all-time high, giving them a market capitalization of nearly $300 billion. And yet even some of Apple biggest fans still seem disappointed by Apple’s effort to sell ebooks.

One site had even stronger words, calling Apple’s iBookstore “one big failure”. David Winograd has both a PhD and an MBA, and he writes for “The Unofficial Apple Weblog,” where he analyzed the surprisingly small selection of ebooks in Apple’s store. “At launch, it was reported that the iBookstore contained somewhere between 46,000 and 60,000 titles, 30,000 of which came from the Project Gutenberg library of free out-of-copyright books.” Eliminating those “brings the number of titles at launch…to a generous 30,000.” Amazon, meanwhile, boasts that its Kindle bookstore has “over 700,000 ebooks, newspapers, magazines and blogs” — so it seems safe to assume that counting ebooks alone would still give Amazon close to half a million choices.

I’m always curious how Amazon’s Kindle Store would compare to other online bookstores, but David Winograd actually performed some real-world research. “I did a search of the New York Times Best Seller List from last Sunday and found that three of the hardcover fiction titles and three non-fiction titles were missing from the iBookstore. Amazon had all of them except for [Jon Stewart’s] Earth (The Book), which has no electronic version…” And there was another big problem with the iBookstore. “Sometimes Apple came out more expensive while Amazon never did.”

This disparity leads the unofficial Apple blogger to his biggest complaint: “The iBookstore is full of holes.” He’d initially been excited about buying ebooks from Apple’s iBookstore, “but I became disappointed at the lack of availability and prices of what I wanted to read… unless Apple takes some giant steps to fix the things that are broken with the iBookstore, it will continue to be a dismal failure.” In August, one author even reported that he’d been selling 6,000 ebooks a month in Amazon’s Kindle store, versus just 100 per month in Apple’s iBookstore.

But to be fair, the iPad is changing reading in other ways — and it won at least one match-up against the Kindle in a small town of 60,000 people. In Northern California, their city council will vote today on whether to replace their bulky agenda packets with digital versions on an iPad! Yuba City “prints 20 full agenda packets for each meeting, creating an average of 68,000 pages per year,” according to a local newspaper. “Five electronic devices for council members, two for the city manager’s office and one for the city clerk would cost $5,240 with an expected annual savings of $2,200 in printing costs!”

They’d also considered delivering the council minutes to a Kindle, but felt it didn’t score as highly in usability, readability, and “available applications.” But it probably would still score higher in its selection of ebooks.