December 27, 2010, 1:30 pm

Third-Generation Kindle Is Top-Seller
By NICK BILTON
Reuters

http://bits.blogs.nytimes.com/2010/12/27/3rd-generation-kindle-is-top-selling-amazon-product/?pagemode=print


O.K., here goes: when it comes to the Amazon Kindle, I’ll admit it, I 
was wrong.

When the Apple iPad was announced in January, I wrote a blog post that 
predicted “Three Reasons Why the iPad Will Kill Amazon’s Kindle.” I 
noted that Amazon isn’t innovating fast enough and that as a 
single-purpose reading device, the Kindle was just too expensive.

I believed the Kindle would end up in the gadget graveyard because it 
couldn’t stand a chance against Apple’s proven design and marketing 
prowess. Amazon clearly wasn’t going into that battle. Instead of going 
after Apple by building a product that competed with the iPad, Amazon 
went in the other direction, creating a reading device that is 
light-weight, relatively simple to use and most importantly, 
inexpensive. (The third-generation Kindle starts at $140; the Apple iPad 
begins at $500.)

For Amazon, this tactic seem to have paid off. The company said on 
Monday that the third-generation Kindle is the best-selling product in 
Amazon’s history, beating out ”Harry Potter and the Deathly Hallows” 
which is the seventh book in the Harry Potter series, and until now, the 
bestselling item ever sold on Amazon.

In a company press release, Jeff Bezos, Amazon’s founder and chief 
executive, even tried to drive the point home that the Kindle is not 
trying to compete with color reading devices like 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,” Mr. Bezos 
said in the release, also pointing out the price of the Kindle is “low 
enough that people don’t have to choose” between devices.

Amazon is also wooing customers into the Kindle fold with the approach 
it has taken to selling e-books, irrelevant of the actual Kindle 
hardware. The Kindle e-book software is available for nearly all mobile 
devices, making it simple for customers to read books on an Apple iPad, 
Amazon Kindle, Google Android phone as well as a desktop computer. A 
person can start reading on one device, stop, and pick it where he left 
off on another device.

By being ecumenical, many e-book customers have quickly become 
accustomed with the Kindle bookstore no matter what reading device they 
own. In comparison, the Apple iBookstore is only available on some Apple 
products.

For Amazon to keep its footing in the e-reader space, it is going to 
need to continue to push the boundaries of price, portability and 
innovation as a number of new Google Android tablets are expected to 
enter the marketplace in the coming year.

-- 
========================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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