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June 17, 2009 1:57 PM PDT

The Amazon Kindle could enjoy iPod-like success

by Don Reisinger
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Amazon Kindle

Amazon is bringing the Kindle to all kinds of devices.

(Credit: Screenshot by Nicole Lee/CNET)

Amazon.com CEO Jeff Bezos spoke on Monday at the Wired Business Conference, discussing his company and the future of the Amazon Kindle.

After discussions on Google Book Search and other topics, Bezos sprinkled in a few tidbits of information that could have a lasting impact both on the e-book business and the tech industry as a whole. According to Bezos, he plans to break the Kindle business into two parts: hardware and software.

Amazon's e-books are already available on the iPhone. Users who want to access titles can download the Kindle app and buy books from Amazon's store. But Bezos wants to do more. He believes that the path to success is through sharing e-book technology with competing hardware makers.

"The device team has the job of making the most remarkable purpose-built reading device in the world," Bezos said at the conference. "We are going to give the device team competition. We will make Kindle books, at the same $9.99 price points, available on the iPhone, and other mobile devices and other computing devices."

It might be the smartest move Amazon has made yet.

When it was first released, I was suspect of the Kindle's opportunity for success. It was expensive, and I didn't feel that it adequately satisfied a desire in the market. I guess that I was wrong. Today, e-books account for 35 percent of Amazon book sales.

To further that success, Bezos is shying away from cutthroat corporate behavior. He wants his company to lead the way, but he also wants Amazon's library of e-books to be made available to competitors.

"We want to have the best electronic book store, and we want to have the best-built e-reader--not try to use one thing to advantage the other," Bezos told Wired magazine's Steven Levy.

It makes sense. Shortly after the launch of a DRM-free Amazon MP3 service, Apple also made its made its industry-dominant iTunes Store free of copyright protection, enabling consumers to use other devices and still buy songs in its digital shop. It gave Apple an opportunity to cater to users who had heretofore decided against an iPod and were forced to buy songs in other stores. By allowing its music to be played on any device, iTunes may be well on its way to enjoying even greater success.

Like the iPod for music, the Kindle might be a stellar device that easily bests any other e-reader on the market. By following Bezos' strategy, Amazon can simultaneously profit from its hardware and can ensure that it's getting a piece of the revenue from any device competitor that decides to support Amazon's e-book format.

Amazon is a retailer. And although it still profits off the sale of its hardware, the opportunities for earning steep profits on its Kindle store are too great to lock it down.

That's precisely why Amazon should play nice with competitors--and why, if its strategy plays out, Amazon could become the Apple of the e-book world.

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Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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by Hep Cat June 17, 2009 2:56 PM PDT
I read nothing in the article you wrote about how the Kindle is an unqualified success.

Based on what? Compared to what?
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by jbcahill June 17, 2009 3:16 PM PDT
Gee...the fact that the Kindle is ridiculously over priced and yet they can still sell every one they make and have a waiting list of people begging for them to hurry up and make more..sounds pretty successful to me.
by slapppy June 17, 2009 3:58 PM PDT
Nope. iPhone/iPod Touch is all you need. NO need to lug around another large/oversized device with very little functionality to justify the cost.
by June 17, 2009 3:17 PM PDT
Kindle? What's that?
Oh right... some electronic device that's only available in the US.
Yawn.
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by norbert6464 June 17, 2009 3:32 PM PDT
Please don't neglect the fact that Steve Jobs posted an article online prior to any DRM free store that apple would embrace a DRM-free music store as soon as the record companies would allow it. Going DRM-free had nothing to do with Amazon.
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by baconstang June 17, 2009 3:34 PM PDT
Oh sure! I can see all the kids walking down the street or riding the bus reading their Kindle...... NO.
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by cash_7 June 17, 2009 3:47 PM PDT
This is one of the first articles that Don has written in a while that actually makes good sense and that I agree with. Most of the time I'll read his articles for a good laugh on his takes that are just flat out off... but this is actually good. I wasn't a user of the Kindle store until I got my iphone... I don't own a Kindle, and don't know that I will any time soon, but I do buy Kindle books for my iPhone. I think there's no where to go but up for Kindle on the media side... on the hardware side, I'm sure it will just keep getting better and better, and eventually, I'm sure I'll break down and buy a Kindle reader.

Way to go Don... good take.
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by TV James June 18, 2009 11:44 AM PDT
The minute I can check out books from my local library, I will buy a Kindle. Even if it then later means turning the receipt into my wife who I've made take over the financials in our house to curb unnecessary spending.
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by Sonnyjoon June 22, 2009 1:40 PM PDT
The Amazon Kindle is nothing amazing. Just another smart way to get people with a lot of money to spend it...and I'd think the illuminated screen would hurt your eyes after a while, don't you think? Traditional, physical books are much better, and I don't see anything wrong with the way they are now. Seriously, does everybody need to include technology in every corner of their lifestyle? People have iPhones that have some of the abilities as a computer (making it something like a pocket laptop) and are stuffed with so many things, iPods play music wherever you go (and also let you view videos and pictures), and now you're gonna tell me we need a digital, techno way to read our books? I think we have enough pocket technology to fuel us, don't you think? I mean, I use an iPod and I think it's already equipped with enough mind-boggling technology...can't anybody invent some sort of new technology (that word again...) that will aid in, for example, dialysis, the filtering of a faulty kidney?
Allow me to say one more time...THERE IS NOTHING WRONG WITH THE CURRENT TRADITIONAL INK AND PAPER BOOKS! And though someone might say, 'well, what happens if you want to travel with an ultra-heavy book in your backpack?', well, I don't think anybody's going to ever lug around ten dictionaries in their backpack, wouldn't you think? The Kindle is just another money-wasting, time-consuming tool. I don't think I need to ever recharge my books in order to continue reading them, or having to scroll down the pages...but sorry, I've babbled enough...Sorry...
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by coreylarue June 24, 2009 4:55 PM PDT
"I'd think the illuminated screen would hurt your eyes after a while, don't you think?"

someone obviously has NEVER seen e-ink technology. There is not a bright light behind the text...it looks exactly like a sheet of paper. someone also has obviously never been asked to print out a 70 page PDF file and read over it for a class...reading that on a computer screen is about as comfortable as looking at the sun for an hour (not to mention the cost of printing, paper, etc.).

Before you knock "people with a lot of money"...maybe you could consider students actually finding the kindle an easy way to save a dime in the long term?
by bettb June 30, 2009 5:02 PM PDT
The kindle sounds cool but I don't have that kind of money to burn for a unifunctional device like this. When the price gets reasonable or I graduate and start making money I may buy one.

When the books get less expensive I will read them on my iphone. But for now they are stupidly expensive, as are all paperbacks. (Not to mention textbooks, don't even get me started.)

Support local libraries!
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by d4nowar July 17, 2009 3:32 PM PDT
Situation 1: Oops I dropped my book in the sand at the beach, I'll just shake it off and it's good as new.

Situation 2: Oops I dropped my kindle in the sand at the beach, I shall now enjoy the irremovable tiny grains of sand stuck in every moving part of my machine.

I'll stick to ink+paper. And don't even get me started on post apocalyptic humanity. Try keeping warm with a kindle!! Doubt you could, but my well stocked shelves of flammable paper should do the trick.
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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