With Kindle, why is Amazon blind to Wi-Fi?

This was originally posted at ZDNet's Between the Lines.

Amazon has unveiled its much-hyped Kindle DX, an e-book with a 9.7-inch screen designed to raise a ruckus in the textbook market, but also has delivered a $489 curve ball that seriously alters the return on investment calculation for academia.

On the surface, the argument for the Kindle DX (Techmeme) in academia holds somewhat but that price tag makes the case much harder for your average student. Amazon is asking students to learn a little about total cost of ownership over three years before they pick up a book. What is this? Enterprise software?

Amazon's Jeff Bezos introduces the Kindle DX -- bigger, and more expensive.

(Credit: Sarah Tew/CNET)

The Kindle DX runs you $489 as an upfront investment, and the average student spends $488 on new and used course materials a year. In a nutshell, Amazon is asking the average student to fork over more money for the Kindle and then buy the textbooks too.

Add it up and the average student is losing money on the Kindle DX in that first year. Let's say Amazon can halve your textbook costs to $250 a year--you'll still be shelling out nearly $750 in year one.

Over two years, a student will still be behind on the Kindle DX return. Going the paper route on textbooks yields a two-year cost of $976. But the Kindle still runs you $13 more over two years.

In year three, that student will start saving money via the Kindle ($1,464 on paper textbooks vs. $1,239). The big caveat here: I didn't include the used-book market and assumed that the Kindle DX still functions well. Another big assumption: All the textbooks you'll need will be available on the Kindle (not likely). If Amazon can cut a student's textbook costs to $100 a year, the case for the Kindle DX would obviously look better.

In a nutshell, Amazon is trying to make a four-year total cost of ownership case to an audience that just doesn't have the attention span. So-called "super seniors," or those on the five and six year college plans, may find some return.

As Andrew Nusca noted:

Books at college can run up to $400 per semester. The Kindle DX is intended to last longer than that, of course, but this is under the assumption that the student won't break or damage the device quickly and all a prospective student's material is available through Amazon's service.

What happens to the return on your Kindle DX if it gets damaged during a close beer pong match?

So what caused Amazon's big disconnect? Simply put, it is Amazon's love affair with Whispernet, its 3G download network.

In its statement about the Kindle DX, Amazon boasts:

Just like Kindle, Kindle DX customers automatically take advantage of Amazon Whispernet to wirelessly shop the Kindle Store, download or receive new content in less than 60 seconds, and read from their library--all without a PC, Wi-Fi hot spot, or syncing. Amazon still pays for the wireless connectivity on Kindle DX so books can be downloaded in less than 60 seconds--with no monthly fees, data plans, or service contracts.

Who cares? The Kindle DX is tailored for students that happen to have Wi-Fi in every campus corner. This miscalculation means Amazon has overpriced its big Kindle--to pay for wireless service--and may leave growth on the table. A cheaper Kindle DX that only uses Wi-Fi is the student ticket. Amazon missed the mark.

Consider this chart detailing where your textbook dollar went. Now you can include costs for Whispernet.

(Credit: National Association of College Stores, via Larry Dignan/ZDNet)

[HlLLARY CLITON]

I agree....not having WiFi is a bummer

[BOTNET]

really?

1. Whispernet needs no setup, WIFI does
2. Whispernet works everywhere where sprint has coverage, WIFI is very limited
3. Whispernet is secured isolated network, WIFI is open to the internet
4. Whispernet eats less power than WIFI
5. Whispernet is slower (probably), but who cares if you get the book in 50 seconds or 20 seconds?


Whispernet is (and that's why amazon has it) isolated from any "free books over wifi" hacks

[xyzpdq45]

Whispernet is open to the internet. I have gotten many free books over Whispernet, without hacks. Kindle FAQs, and some of the Kindle guides sold on the Kindle store, will provide links to free eBook sites which may be accessed on the Kindle.

[sting7k]

No way a 3G radio uses less power than WiFi. 3G is still a battery hog.

[big.mouth]

BOTNET, give your shilling a rest. No one but a shill would make the ridiculous claim that 3G uses less power than Wifi.

[zmnatz]

Seriously, people really spend 400 a semester on textbooks? I dont think I spent more than 200 any semester of my 4 years. Hard to believe. Also, I made money back by selling most of my books so it never really ended up costing THAT much. Can I resell my Kindle textbooks? I think not.

[LuvThatCO2]

Thats a very good point about reselling the text books. That really needs to be thrown into the cost equation. Also, I think 'guestimating' text books would cost 50% less is overly generous. I dont see the book publishers doing that.

[drhamad]

I could spend close to $200 on a single textbook. I've spent up to a grand a semester on textbooks.

[pjhenry1216]

I think that was the author's point about saying he didn't include the used-book market into the equation.

[timber2005]

I definatley have.
Heck a core class probably has a $100 book. Four classes and there you have it.

[paulimusmaximus]

That's exactly what I was thinking. I always sold my textbooks, and you know amazon will not sell their textbooks for half price initially either. If anything, they'd be better off giving college students a big discount on the dx, so they can make them buy the textbooks from them instead of somewhere else. Seems like a good business plan to me.

[anansewill]

all good points but lets not forget the value in not having to carry 20 pounds of textbooks on your back while running between classes....

a touchscreen and stylus to take notes would have sealed the deal

[Mr_7235]

I don't know how it works in other departments, but as an engineering grad student, I almost never needed to bring a textbook to class. Also, at least in undergrad, I was generally able to borrow my books from friends who had already taken the class, so my textbooks were mostly free.

As for the beer pong comment: 1) It's mostly Beirut these days and 2) We manage to maintain our laptops just fine.

[drhamad]

You bring textbooks to class?

But you do bring up another big downer for the Kindle - you can't take notes on the book.

[wanorris]

You can absolutely take notes on the kindle, you just have to use the keyboard.

[big.mouth]

wanorris, that's like saying I can take notes on my phone. It's theoretically possible but practically pointless.

[xhable]

still no plans to release in the UK :(

[malexandria1]

Um.....Because Wi-Fi is unreliable, overpriced GARBAGE? What is the point of this article? Didn't even waste time reading it, why would you whine about the lack of Wi-Fi on a device that has built in wireless broadband service? Dumb articles like this just bug me.

[dissent3125]

Wifi is faster and cheaper and most campuses have wifi networks throughout.

[drhamad]

You're right, in a way - the 3G network is superior for the purpose - but there's a HUGE price difference.

[Eludium-Q36]

Two issues with author's comments: (1) the Kindle DX is not exclusively for students so WhisNet is still necessary so it'd kind of redundant (and more expensive) to have Wifi too, and (2) the closing stmt: "Now you can include costs for Whispernet." Yes, a cent or fraction might be added for that but look at the cost reductions that come out of that dollar: freight, and printing costs because Amazon textbooks will be priced lower than physical retail. That's far more savings than any added cost.

[xyzpdq45]

I would not want to bet that Kindle textbooks would be much less expensive than hardcopy ones. Many of the books I've looked at in the Kindle store are 80% the price of the hard copy, while being much less useful. By 'useful' I include the ability to resell the book, and the ability to put the book aside, and read it a decade later. Clearly that's an either/or proposition with physical books, but it's a neither/nor proposition with Kindle books. Even if Kindles are around in a decade, or two, or longer, Amazon would need to remove their six device limit to allow the books to have been transferred between successive Kindles, as it's currently limited to a total of six devices. I've purchased ebooks long enough ago to have read the same book on more than that many devices, so while I own a Kindle 1 for the better ebook experience, I don't purchase any of the DRMMed books unless they are specifically about the Kindle.

[wanorris]

Unlike, say, novels, textbooks are *extremely* expensive to print. A typical science textbook has low print runs, a massive number of large sized pages, and frequent use of process color.

Just as importantly, the used textbook market dampens demand, reducing the number of copies that will be sold over the life of the book, so each copy is worth more money.

The net result is that the cost to the publisher for a textbook is very high, and they pass that along.

With Kindle, the cost boils down to the cost of writing, editing, formatting, and publishing the book, and they will sell a new copy to every student. I absolutely expect the prices will be lower, and that even with that, textbooks will be more profitable to the publisher.

[tekwiz4u]

WHY NOT have Wi-Fi? Colleges have FREE wi-fi !! I would not want to PAY extra for a connection that can be easily replaced by a FREE one. And add insult to injury, these are students that have budgets!

Wake up Amazon! That's your main ROI!

[malexandria1]

Yeah but the rest of us in the real world don't live on College campuses where there is free high quality Wi-fi. The only places where I can get Wi-Fi is when I'm staying at a hotel or if I happen to be at borders or someplace where they charge ridiculous rates for it, like $10 or $15 a day and then it's usually slow almost useless. I HATE Wi-Fi and get annoyed when people talk about it as though it's the greatest thing ever.

[tekwiz4u]

Yeah, but in the REAL WORLD, where would this device be applicable unless you work for a university, avid book reader, or research studies?

Wi-Fi is not that hard and it WORKS. The only reason you're experiencing troubles is becuase places dont set it up right. If you're a business traveler, wouldn't you want to get something free then expense it? If all else fails, slap in the Verizon/Sprint card. And for the record, it's the greatest thing ever.

[VoxLocus]

I have Kindle1 & Kindle2.

The concept of 24/7/365 3G unlimited internet connection WITHOUT ACCESS FEES is revolutionary.

You don't need WiFi to get Kindle content if you have unlimited 3G internet. You don't have all the problems associated with DHCP passwords encryption, etc. Turn on your Kindle and if you're in an area served by Sprint, you have internet.

See a link in a blog or even in a book? Click the link on the Kindle and off you go to the the link.

Sure, Amazon could sell a Kindle without the 3G, WiFi only. And, sure, Amazon could charge less. But just walk into Barnes and Noble, or Starbies, or your college dorm, with that Kindle, and try to sign on. Password? Encryption? Account? Much easier to just turn on the Kindle and be connected and be able to SAFELY shop the Kindle store for downloads.

The Kindle 3G cell connection seems to use up the battery much slower than the WiFi on my laptop.

The Kindle is not a computer. It can substitute for a computer if you want to look something up on Wikipedia, or Google, but if you want a tiny WiFi computer, you need to just buy a netbook.

[tekwiz4u]

Kindle IS a computer. It reads binary and converts it into readable format. And if Amazon engineers designed it right, all would it take to connect to Wi-Fi is a few clicks. And it would be SAFE from hacks if it only connects to the AMAZON store. Like the iPhone and iTunes currently. Better, faster, and FREE.

[VoxLocus]

TEKWIZ4U

My watch is a computer, too, if by computer you mean it has a microprocessor.

Sure, the Kindle has a microprocessor, but it is not advertised or sold as a "computer."

As to safe, Amazon could (I suppose) design a WiFi connection protocol that would connect only to Amazon through an encrypted VPN type "tunnel." Then you would not be able to use the browser to go outside Amazon's site, unless Amazon started acting as a web portal.

As it now exists, the Kindle provides access to the full web, although it works BEST with mobile sites formatted for PDAs. You're sure not going to run FLASH or stream audio or download files, other than content provided through the Amazon Kindle Store.

Again, if you want a tiny computer for computing uses (Word, Excel, video, music) get a Netbook. If you can't find a WiFi hotspot for free, you can always sign up for Verizon or AT&T data plans --- at like $60 a month.

If you want a neat gadget for carrying books, some music, and getting updated news and blogs, and for occasional use as a web browser, get a Kindle.

[wanorris]

A Kindle is a computer in the same sense that a digital watch is a computer. That sense is not the germane one.

If Whispernet and WiFi are both free, I have to say, I don't see why everyone is so intent on pointing out how free WiFi is.

[tekwiz4u]

@VoxLocus

I'm not saying for it to perform as a netbook. All i'm saying is there are things more cost effective and in turn will get the best results. As with my case with Wi-Fi. If it took the concept, like the iTunes...only for books, then I can see it be more feasible people will purchase the device and have the benefits of Wi-Fi connection. And in most cases, they dont have to sign up for a expensive service plan.

Yes....leave the MP3 streaming, Flash, and MS office for Laptops/netbooks.

[VoxLocus]

TEKWIZ4U

As I said above, a Kindle I carry most everywhere. I can connect most everywhere I go.

I also have a laptop and a "pass" to SBC WiFi. If I'm moving around town, I could drive from Starbies to Starbies to MickeyD's and maybe Barnes & Noble. There's a few rare "free" Wifi spots, like Panera I don't need an AT&T card.

Now if I were a college student, which I'm not, my campus would probably have lots of "free" WiFi. If I never left campus, I'd be good to go.

Thing is, so what? The Kindle can "browse" the net, but I'm sure not reading this site or posting this note from a Kindle. So as the Kindle works, WiFi doesn't add anything. Were Amazon interested in selling the Kindle for LOTS less, they could simply offer a model with NO wireless connectivity. That would be the Sony Reader Digital Book which sells for not a lot less than the Kindle, but gets its books from a computer connected to the Internet.

[LuvThatCO2]

The other problem with relying on Whispernet is that the 'text books' for many courses are prepared by the instructor. Without wifi/memory card access to the device, these sorts of materials cant easily be put onto the kindle (not without all the hallabaloo of dealing with amazon)

[Renegade Knight]

Good point. Once again we hit on why open standards rae better.

[VoxLocus]

It is extremely easy to connect a Kindle with the provided USB cable to any computer and copy over files.

Each Kindle has two provided email addresses. One for emailing content Amazon will reformat at a slight charge per item. Another for content that does not need reformatting.

Since the DX model will read PDFs natively little reformatting is likely necessary.

[Claviole630]

I was a student and everything about buying textbooks is a money succubus

[mi737373]

KINDLE VS COMPUTER - POSSIBLE SCENARIO

The Kindle must be a computer to survive. Actually, I beleive it is already obsolete. It is going furher and further toward mimicking what a laptop already does. Why carry a laptop and a kindle just to read text?? Other than the proprietery books availability the Kindle is doomed (as are all other such devices). Most people I have talked to who use a Kindle refer instantly to only two factors for using it, it is easier to read than a computer display and number 1, it is shaped like a book. Anyone use a tablet computer? You can design a tablet with a revolving screen to read like a book. Customize the display so it reads like a Kindle, then add all the pc software and functionality of a laptop (easy to do as everything gets smaller and faster) and viola, you don't need a Kindle or any other extra device. The last piece you need is books made available in one pc comaptible (Mac too) format. There goes Sony ,Kindle and everyone else. Why put mney into developing this unless Amazon is going to be the one to introduce this new hybrid computer? If anyone else does (Dell and Microsoft) publishers and authors will move their books to the more common universal platform. Amazon's Kindle market dries up. gGeat for the student market too who can carry this one device and have everyhitng they need at hand for class or inbetween.

[pjhenry1216]

Its not so simple to recreate the display of a eInk. eInk is a completely different technology than LCD, Plasma, OLED, etc. that would undoubtedly come on a tablet PC or netbook. To read a laptop in the same fashion as you would a book (or kindle), you're actively damaging your eyes. Its not just a convenience thing, its a medical fact that you will slowly destroy your eyes. Will it cause you to go blind? Unlikely. Will it cause your vision to degrade faster than if you used a kindle? Most definitely, assuming you're the target consumer for an eReader, which is to say someone who reads a lot.

[magvine]

First off, the one thing I never seen mentioned in any discussion with etextbooks on the Kindle DX or any Kindle is translating page numbers from the e format to the paper one. I have a Kindle 2 and love it, but I have no clue what their pagination system is. If I wanted to find the same page in printed book that I have on my Kindle, I wouldn't know where to begin (other than by chapter). This would be a problem when a professor says "turn to page x". Of course what about classes that reference many books in one class period, something tells me that switching on the Kindle would be more trouble than having your master text open with smaller books freely available. Then there is the small problem of making sure you have the right verison that the professor is requesting.

This is all to say that a Kindle DX wouldn't work in a lot of history classrooms, for that matter most social sciences or humanities. Too many books need to be referenced at one time, and class participation needs to be backedup with page numbers.

Love the idea, but a tablet touch screen style would be better. It would have to be the size of a notebook (that is a paper notebook) and capable of showing four books at one time (one in each corner). From that you can expand one to full size or two for half screen.

Oh and I easily spent closer to $600 a semester my last couple of years in college.

[monomoso]

Is the Kindle DX still monochrome? Many figures used in textbooks and research articles are color and cannot be clearly interpreted as grayscale images.

[Connallmac]

Dear Amazon.com,

I have been a satisfied customer of Amazon.com since the mid 90's. On many occasions I have recommended Amazon to my friends, relatives and co-workers for their superior service and pricing. Just last week, when my 66 year old father-in-law bought his first mp3 player, and iPod Nano, I recommended that he shop for his music at Amazon, rather than through the iTunes store.

I purchased a Kindle 2 at the beginning of March this year shortly after it's release. You claimed that it would support pdf files through your conversion service. Imagine my dismay when I put my first converted pdf on my Kindle 2. I was very frustrated with the terrible and in many cases unreadable formatting of converted pdf files. I have downloaded half a dozen different programs to try to convert my pdfs to txt files for better readability and have had little success.

When you announced the release of the Kindle DX and it's native support of pdfs I was incensed! It has been only two months since the release of the Kindle 2! You should have disclosed to your customers that you would have another product available in a few short months that would better meet that need. I knew at the time I ordered my Kindle 2 that the latest Sony e-reader had native support for pdfs, but I was reassured by my long relationship with Amazon that when you claimed to be able to convert pdfs you would do a good job. You didn't do that, and you knew that you would soon be releasing a product that did do that and you didn't disclose that fact to your customers. Now you won't allow me, and many others like me, to exchange my Kindle 2 for a Kindle DX. I feel like you pulled a bait and switch on me.

In light of your inconsiderate and unethical behavior I can no longer recommend Amazon and it's products and services to others. They say that every person who has a bad experience with a company will tell ten other people about it. I have already told four people today, and will continue to tell as many people as will listen what a bad idea it is to do business with Amazon.com. This includes several who were considering purchasing Kindles themselves, who I will now encourage to look at the other options available, especially the Sony e-reader that natively supports pdf files. There are two solutions to the problem that I see. You could accept my return of my Kindle 2, my Kindle 2 cover and my Kindle 2 two year warranty and apply that credit to the purchase of a Kindle DX; I would even be willing to accept a 10% restocking fee. You could certainly use it to replace a defective Kindle or to satisfy a warranty claim. The other solution is a firmware upgrade that provides native support for pdfs on the Kindle 2. I would prefer the former solution, but I would be willing to accept the latter. Either solution would be much cheaper than the bad publicity you will continue to create with the current situation. Remember Apple's backtrack over iPhone pricing?

Thank you in advance for your time and consideration. I would like to be a satisfied Amazon customer again, but it's up to you to resolve this situation in an appropriate and timely fashion. Please don't let me down.

Sincerely,

Joshua D. Haney
Former Amazon Customer

[pjhenry1216]

To be fair, they put many disclaimers on the pdf conversions virtually everywhere that they mention it. Also, there's no need for them to say they'll come out with something that will better suit your needs. For all they know that product may have fallen through some cracks and not have come out for a long while due to license agreements, etc. Moreover, how are they to know you're purchasing it as a PDF reader. Its not marketed as a PDF reader. its marketed as a ebook reader with limited capability to read PDFs.

This mistake is mainly your own. You could have done more research to see the quality of conversion if you were going to be dependent upon that factor. Especially since it claims all the time that the conversion is difficult and not always perfect.

Way to try to blame someone else for your lack of insight, lack of research, and lack of intelligence in purchasing a product that was marketed towards people other than you.

[billyjocruiser]

Another obstacle not mentioned is YOU CAN'T WRITE NOTES IN THE BOOK. Students frequently highlight, underline, write in the margins etc etc.. A kindle offers none of these features. It is also a good candidate for theft, if I lose my kindle, I've lost all my books as well.

[VoxLocus]

The Kindle does offer highlighting and more. You can probably download the manual from Amazon.

If you lose your Kindle, call or email Amazon. They will turn it off just as your cell phone carrier will turn off your cell phone if you lose it.

All the content you bought for your Kindle is still safely on the Amazon servers. Lose the Kindle, and would have to buy a new one. New one in hand, all your content is available for re-download. No problem.

[pjhenry1216]

Does anyone wonder how all those nice graphs, charts, and other various figures THAT UTILIZE COLOR to describe various ideas will look on the Kindle? I'm all for the Kindle, but I'm curious to see how well it'd load a color graphic into 16 shades of gray or on the publisher's side of things, how well they'd be able to utilize only using 16 shades of gray to make their books.

I know in engineering, mathematics, biology, and various other highly scientific and/or technical courses I've taken, I've seen a lot of pretty pictures that ranged from useless to extremely useful and a lot of times the color played an important part in understanding it.

[moldor]

Amazon is destroying its' overseas market with the STUPID decision not to have WiFi in the Kindle DX.

In Australia, with its' crappy 3G coverage (unless you go with Telstra, then you won't be able to afford the Kindle DX anyway !!) and expensive plans, no-one will be able to afford to download ebooks.

Whereas with Wifi, which is not universally available publicly YET, they stand a chance.

Oh, and the price - $800AUD !!! I'd rather buy a Netbook for that price.

[pjhenry1216]

Are they not offering free 3G connection with the Kindle DX in Australia (or other Kindles for that matter)?

I keep seeing people mention how expensive 3G is and how free WiFi is, yet at least in the US, the 3G connection is already free. There's no need to bring price into the equation.

[Shibusuke]

"In a nutshell, Amazon is trying to make a four-year total cost of ownership case to an audience that just doesn't have the attention span."

"What happens to the return on your Kindle DX if it gets damaged during a close beer pong match? "

Excuse me, but I find this extremely insulting. I happen to *be* a college student, and I also happen to work extremely hard to earn good grades and acquire a solid education. Not every college student is a 'beer-chugging frat-boy.' If I have the "attention span" to graduate in four years, I'd appreciate it if you didn't lump every student, striving for an education or not, into your preconceived notions of the Animal House that you must consider college to be.

That said, I don't think the Kindle DX is viable as an alternative to real textbooks, as the programs in place at institutions around the country that help facilitate lower book prices, as well as websites like Half.com, will easily undercut its four-year investment structure. I don't think I've broken $250 a semester since freshman year using those methods, and even then, I usually average around $100 - $150. They're going to have to do a lot better if they want to gain a market share in academia.

[planetshoes]

I bought this thing to travel around the world and see my daily paper. NO WIFI. Rediculous!!