Kindle News: Sun-shade for iPad/LCD, Amazon net income, accessories for new Kindles, Kindle Fire: "Millions more" built + good video of demo

COVERS FOR LATEST KINDLES

I saw the "Snugg Amazon Kindle Fire leather case and flip stand w/ elastic hand strap and Premium Nubuck Fibre Interior, high quality" case in a press release today.  It stated a normal price of $39.99, with a"Sale" price of $29.99 currently and will be released on November 15, the same date as the Kindle Fire tablet/reader itself.
  I'm partial to flipstands, but I wish this didn't have that stitching showing.  The product is not eligible for Prime.

Here's Amazon's entire assortment of covers for the Kindlefire.

Update: - See the later article on less-expensive covers also.


These are two more unusual covers I've seen and are for the Kindle Basic (NonTouch) and the Kindle Touch.  The first one is the New "York Times cover" ("View from Riverhouse") and the second one is the "Verso Prologue" cover.  Click on the images to

Here are the covers Amazon has for the new e-Ink Kindles.

Click on the images for more info at the product pages for those.

The most useful bookmark for these is the page for all accessories for each Kindle model.

 Note that although the Kindle Touch is a bit larger than the Kindle Basic (NonTouch), cover makers are making covers that will work for both units.


A good Kindle Fire demo on video
Richard B. Drake at the Amazon Kindle forums recommended a YouTube video'd demo of the Kindle Fire, saying it's the best demo he's seen so far.  It's the best one I've seen also.
  To Kindle-Edition subscribers: The video link for use on your computers is: bit.ly/kindlefirevideo.


A Kindle Confession
I got a kick out of this news story by Pat Snyder for Columbus Local News when I spotted the opening paragraph:

' This is hard to admit in pubic, but I'm finally coming out.

After telling my book club, my children, and the English major in me that real books are better, I've been sneaking around with a Kindle. '

  It goes on to describe the realities of public library lending, so if you have time, read the full article at the link.


"iPad to Kindle: ‘Move Over. You’re in My Sun"
Gadgets Technology features iclipstore.com's iclipse sunshade for iPad ! which is for shading the LCD screen from the sun, "solving the outdoor readability issue."

  I wonder if they or someone will make one for the Fire and other smaller LCD screens.  It's something extra to carry around (flat, they say, and doesn't need to be attached to the tablet) but will mean the difference, sometimes, with whether or not you can view or, especially, read the screen outdoors.


Amazon's lower profits in the 4th Quarter
I mentioned the other day that profits would 'dip' for this quarter and they certainly did, as reported by betanews.com -- a big increase in sales (39% increase over same qtr last year) and a decline in net income, which was down 73% year over year.  Shareholder reactions were as expected.  But Amazon finished the quarter with $2.8 billion in cash -- quite a bit over the same quarter last year, which closed out with $1.5 billion.

"Shareholders reacted poorly to the earnings report, driving down Amazon shares by 15 percent in after-hours trading."

  However, a really excellent article on Jeff Bezos by SUCCESS Magazine's John H. Ostdick, that I meant to post earlier, reminded readers of another period in which long-term growth was Amazon's focus rather than short-term gains.

  The familiar story of Amazon's beginnings with a "book beta test among friends" in a garage/basement in 1994 to a TIME magazine "Person of the Year" cover in 1999, involved an initial business plan that "projected that it would not show a profit for four to five years, and bottom-line anxiety created the first cadre of outside doomsayers Amazon would encounter."

Kindle sales in September after the new Kindles announcement
Expenses for the 4th quarter included development of new technologies - e-Ink Touch Kindles, Kindle Fire, the Amazon Cloud, etc., and now, Amazon needing to build "millions more" Kindle Fire units than originally planned.

 Other related costs are the building of many warehouses and hiring of thousands of new employees all over the country and abroad to handle the growing business, but here's what Bezos said about September:

' September 28th was the biggest order day ever for Kindle, even bigger than previous holiday peak days," Bezos said in a statement today.  "In the three weeks since launch, orders for electronic ink Kindles are double the previous launch.  And based on what we're seeing with Kindle Fire pre-orders, we're increasing capacity and building millions more than we'd already planned.” '

Kindle Touch 3G   Kindle Touch WiFi   Kindle Basic   (UK: KBasic)   Kindle Fire
Kindle Keybd 3G   (UK: Kindle Keybd 3G)   K3 Special Offers   K3-3G Special Offers   DX

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Check often: Temporarily-free late-listed non-classics or recently published ones
  Guide to finding Free Kindle books and Sources.  Top 100 free bestsellers.  Liked-books under $1
UK-Only: recently published non-classics, bestsellers, or £5 Max ones
    Also, UK customers should see the UK store's Top 100 free bestsellers.

Kindle app for iPad - it's June 30. Hulu has removed its "Buy" button

The Bookseller has reported that while the world (well, the interested-world) wonders what Amazon and B&N will do about its e-reader apps for iPad and other Apple devices, it is now June 30, and the last day that Apple has indicated it wants "compliance with Apple's strict new rules for in-app payment and subscription links."

Apple has said that e-reader Apps are expected to remove from the app any Buy buttons that link to an external store via a web browser, as Kindle for iPad does. Otherwise, Apple wants an option programmed in to buy it in-App from Apple, which would be easier for iPad customers.

Apple rep Trudy Muller had explained, February 1, re Apple's rejection of the Sony e-reader app:

' "We have not changed our developer terms or guidelines," Apple spokesperson Trudy Muller told Ars. "We are now requiring that if an app offers customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app with in-app purchase." '

  It's been assumed that Apple's demand would be a 30% cut, which would mean 100% of the Amazon or B&N share of any Big6 publisher book.  However, in connection with that percentage, the only quotes of 30% from an Apple rep were from Steve Jobs during the Subscriptions announcement and then Apple's Internet Services boss Eddy Cue, who said that the announcement applied only to Subscriptions.

  While then it could be possible that Amazon and B&N might agree on something more like 3-5% in order to have a Buy button that would allow iPad owners the option to buy from Apple, it's also possible they wouldn't go for paying Apple whatever fee might be asked, since Apple benefits as much as the other bookstores from having those books readable on its own device and has used that availability in its marketing.  Since iBooks can be read only on Apple devices, the iPad could definitely look less appealing to prospective book-loving buyers, especially those who shop a lot at Amazon and B&N.

  In the meantime, the bookstores could just decide to make their Apple apps read-only and not try to sell books from the Apple apps, since just who does not know how to get to Amazon or B&N these days?

  I had said that Amazon should be able to add wording that the book could be found at their website and do an UN-linked URL to Amazon on the page.

  CNNMoney has an interesting quote from Richard Stephenson of YUDU Media, which has developed mobile apps for magazines including Reader's Digest, who goes further.

' [Stephenson] says he's "pretty certain" that Apple wouldn't block a link that simply says "visit our website."

  "[The problem] is really when you say, 'buy subscriptions from us direct' and there is a clear button to click," Stephenson said in an e-mail to Fortune. "If it's 'visit our website,' then [Apple] will not be able nor wish to block that." '

CNNMoney adds that "Apple spokesman Tom Neumayr said he could confirm only that the App Store terms were recently updated, and wouldn't comment on specific apps or whether a "visit our website" link would be blocked."

  Maybe the online bookstores are sending Apple updated apps that are rejected :-).  Those bookstore apps will be on every tablet EXCEPT Apple if apple makes the wrong decision.  Guess who would lose there.

  In the meantime, CNNMoney said yesterday that:

' Hulu updated its iPad app last week to remove a link to its website. The app's opening screen used to feature the line: "Not a Hulu Plus subscriber?  Visit hulu.com/plus to learn more and sign up."  That line -- and the website link -- are now gone, bringing Hulu into compliance with Apple's rules. '

That's a bit of an indication that a linked "Visit us" may not be acceptable :-)

CNN Money's Julianne Pepitone points out that "...digital booksellers rely on customers buying a steady stream of new e-books to read.  Removing all links from within their apps to make new purchases is pretty user-unfriendly."

Maybe they'll compromise on a small fee.  Apple may actually admit to themselves that iPad sales (and retention) will benefit from certain other bookstore books being readable on their devices, since that's been touted as a feature.

 We should know by tomorrow, I imagine.  I'd think the simplest solution, to keep peace in the bookstore universe, would be for everyone to be on a no-Buy button but I suppose if the price is right we could see one.

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For daily free ebooks, check the following links:

Temporarily-free books - Non-classics - USA: by: NEW:  Apr  May  June 2011    Publication Date   Late-listed    Bestselling   High-ratings UK: PubDate   Popular What is 3G? and "WiFi"?       Battery Care Highly-rated under $1,  Newest: $1-$2, $2-$3

Most Popular Free K-Books U.S. & Int'l (NOT UK):    Top 100 free UK-Only:    Top 100 free USEFUL for your Kindle (U.S. only, currently):   99c Notepad 1.1,   99c Calculator,   99c Calendar,   99c Converter

Kindle 3's   (UK: Kindle 3's)   K3 Special ($114)   K3-3G Special ($164)   DX Graphite

ZDNet's Jason Perlow goes Kindle

March 2010
ZDNet's Jason Perlow, over a year ago (March 23, 2010), announced the burial of the Kindle during 2010, the article headed by a large image of a tombstone for the 'Amazon Kindle 2007-2010,' and said that April 3, 2010 (the Advent of the iPad) would "mark the beginning of the end for Amazon's great hardware experiment -- the Kindle."

And, Perlow felt last year that if the Kindle and Nook apps for iPad would continue to be viable, "...then by all means, put a fork in the dedicated e-book readers, they’re done."

August 2010
In August 2010, the Kindle 3 was released, and that changed things quite a bit.  As others had predicted, the iPad and e-Ink readers were complementary, too different in their features to be compared, with any idea that one would 'kill' the market for the other).

May 2011
But give Perlow credit.  Today he wrote a column titled, "Why I finally joined the Amazon Kindle bandwagon"

It's a somewhat tortured piece, explaining that he just thought it was too high-priced, too closed a system (though he'd mentioned the existing Kindle and Nook apps ready for the Ipad) and then adds today that he's "still a firm believer" that:

' "dedicated e-readers will one day go the way of the dodo bird — extinct.  And I’m sure the future of the Kindle brand itself is almost certainly going to be in the form of a tablet computer running on the Android platform."

Translation: "I was right but my timeline was off."

Why do I say that?  He and his wife have bought two Kindle 3's for their vacation :-)

 Why?  Because Kindles are not LCD tablets! :-) They have an iPad but a dedicated e-Ink reader will meet their other needs.

  He adds that he was right in predicting that e-reader prices would drop.  That was a common prediction;  we're talking Electronics!

  The reason they've bought Kindles?  The same reason that so many have chosen it (or the Nook, Sony, Kobo) while also buying tablets.  It's far easier to read in bright daylight.  And I guess that catchy pool ad got to him (I'm just teasing here.)  What Perlow doesn't mention is that the Kindles are far lighter, easier to carry in a purse or pocket, and easier to hold for long periods of time, when you just want to read books.

  I'm puzzled because he states that he firmly believes the Kindle will eventually be a tablet and to explain this belief, he links us to all the recent news stories about the Android tablets. WELL, they're just like iPads in basic features and readability, and yet he's buying two Kindles. :-)

In time, all our current gadgets/toys will be discarded for 'better' ones.  That's a very safe bet.  (I'm hoping for a vivid-color e-paper type screen that's as fast as an LCD one or a somehow-light dual screen solution someday.)

In the meantime, congratulations are in order.  He didn't have to write a column saying he bought them, since he could have just been doing research.  Hoping they do enjoy them.


Kindle 3's   (UK: Kindle 3's),   K3 Special, $114   DX Graphite

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Check often: Temporarily-free late-listed non-classics or recently published ones
  Guide to finding Free Kindle books and Sources.  Top 100 free bestsellers.
UK-Only: recently published non-classics, bestsellers, or £5 Max ones
    Also, UK customers should see the UK store's Top 100 free bestsellers.

NYT: Amazon tablet? Attorneys: Kindle or tablet? Amazon #1 best-value brand

"The Kindle Is An iPad Accessory" ?

 That's part of the catchy headline in Business Insider's story written by Dan Frommer and carried in the San Francisco Chronicle this week: "The Kindle Is An iPad Accessory, And That's Why It's Still Going To Be Huge " (Thanks to KindleToday for the first report I saw.)  I love the photo (at left) that Business Insider used.

  Frommer's take is that "The Kindle is capable on its own, and many will use it that way.  But the Kindle is now inexpensive enough (and getting cheaper), and light and compact enough, that it's reasonable to consider it an accessory to an iPad, or other larger, heavier tablet.  Or even as a larger accessory to a smartphone."

  Also, his main point in this whimsical piece is that the tablet market will be "bigger and more mainstream" than the dedicated-ereader market, and Amazon, he says, is smart to offer Kindle e-books apps on every tablet and smartphone platform.

  He suggests people with roomy bags can carry both a tablet and a Kindle.  The usual positives are listed:  the Kindle's screen in sunlight, the long battery life,  free 3G access, lower cost, and he doesn't see why people can't be using the Kindle  (UK: K3) to read while one of the tablet features (video, email, music) is otherwise entertaining you on a larger, LCD device.  But many prize quiet, relaxed reading time too.

  In the UK, Carphone Warehouse amd Best Buy will begin giving Kindles away for free "as accessories" (his concept) to customers buying new phones and signing long-term mobile contracts.

  In a survey of those waiting in line to get an iPad on its release-date (the day of the Japan earthquake -- and it was strange to watch the intense focus on Japan's set of horrors juxtaposed with the feverish focus on the new gizmo here), Piper Jaffrey found that about 24% of those interviewed in line owned a Kindle.

NYT:  "Is Amazon working on an Android tablet?"
That's a question from the NYTimes's Nick Bilton and his creative illustration) for the NY Times at the right.

  Well, Computerworld's Steven J. Vaughan-Nichols, in November 2010, mentioned that Amazon sources were telling him they -will- produce an Android tablet.

  To get one working really well, it should take a while since the new (color) Android tablets present problems to some degree (the operating system programmed FOR Android tablets is new).  But if they did it, it would be not a Kindle but a different type of device that supplements the Kindle and of course would cost more.

Bilton points us to Amazon's Lab126 website and its newest job listings which include more Android developer openings.  These could be, though, he says, for software development for other Android devices.  Who knows?  They did buy Touchco, the touchscreen maker with some advanced capabilities some time ago.
  I bought a NookColor for color magazine, color-photography books, and portable color web-browsing, but I read regular books on the more relaxing text screen of the Kindle because I don't get eye fatigue from that the way I do with even a very good LCD screen.

  I would be surprised if Amazon was not working on a tablet but it would have to be an especially good one, at this point, and we've seen it's not easy yet to produce an Android tablet without some downsides.

Amazon named as 'world's best-value brand'
TechRadar.com's Internet News section has a story by Marc Chacksfield on Amazon having been named "world's best-value brand", beating Microsoft and eBay to the top spot, per a study by Millward Brown, a research agency that specialises in advertising and marketing communications.  It tops both the global and UK lists.  How does that affect us?  Not much, except it indicates an emphasis on offering value and probably quality.

 TechRadar is in the UK and announced also that the Kindle will be sold at both Best Buy and Carphone Warehouse there - available in about 400 stores.

LAW.COM - "Tablet or E-Book Reader?  It Depends"
John Edwards (no, not that one) writes about the difficulty some attorneys are having in deciding whether to get a tablet or an e-reader.

The sub-headline is, "If all you want to do is read books and documents, an e-book reader can be a cheaper and more convenient alternative to a tablet computer."
  I'll quote below the comparisons some attorneys made while considering the options:

' Like a growing number of attorneys looking for a way to conveniently access books and documents anytime, anywhere, Charles Naylor faced a choice:  buying a tablet computer or an e-book reader.

Naylor, a maritime industry personal injury lawyer in San Pedro, Calif., opted for a reader, an Amazon Kindle.  He says he doesn't regret his decision. "I have a laptop and a smartphone, and a tablet just seemed like more technology than I needed," he says. "My reader acts like a book and feels like a book."  Naylor appreciates his Kindle's lower cost, smaller size, lighter weight, and extra-long battery life. "It does what I need it to do," he says.

While some mobile technology experts expect that tablets will eventually dominate the e-book market, others -- pointing to users like Naylor -- predict that smaller and cheaper readers will continue to appeal to knowledge-hungry users who don't need a tablet's sophisticated information management and media capabilities. '

They look at Size and Weight; Usability and Convenience; Readability; Wireless Support; Battery life; Document Compatibility [Read the section there]; Cost; and Security.

Also, Edwards points out that while the Kindle screen is more readable in bright sunlight (or by windows), shiny LCD screens -- unless positioned just so -- "are also vicious light reflectors" and annoying under those conditions.  An LCD screen will be better indoors and in low-light ocnditions..

' "When I first got my Kindle, I was switching over to this job and there were some materials about our products I wanted to read," recalls Elle Byram, corporate counsel for ZL Technologies, a San Jose, Calif., company that provides e-mail and file archiving software for compliance, litigation support, corporate governance, and storage applications. "I didn't want to have to lug around a ton of papers, so I figured I could send them to the Kindle in PDF form." While Byram could use a tablet, she feels that her Kindle is easier to carry, less complicated to use, and costs less. "It's just better suited for what I want it to do," she says.
. . .
Katharine M. Nohr, a sports risk management attorney in Kaneohe, Hawaii, says that E Ink's superior readability led her toward a Kindle. "I use a computer much of the day; my eyes need a break," she says. "However, reading a Kindle is similar to reading a book." '

Under Cost, Edwards mentions, "A reader's lower cost makes it more practical and less financially painful to distribute the devices to colleagues and staff members involved in various types of research."

I was surprised that the cases described were heavily weighted toward the Kindle, but it may be that since attorneys focus most of all on words and not usually on heavy use of graphics, this makes snese.  The lightness of the device and the clarity of e-Ink seem to be quite a draw.


Kindle 3's   (UK: Kindle 3's),   DX Graphite

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Check often: Temporarily-free late-listed non-classics or recently published ones
  Guide to finding Free Kindle books and Sources.  Top 100 free bestsellers.
UK-Only: recently published non-classics, bestsellers, or highest-rated ones
    Also, UK customers should see the UK store's Top 100 free bestsellers.

Interview w/ Amazon Kindle-Content head + How many millions of Kindles?

INTERVIEW WITH AMAZON'S RUSS GRANDINETTI

The Los Angeles Times' Alex Pham gets some interesting responses from Russ Grandinetti, who is in charge of content for the Kindle  (UK: K3).

  After pointing out that Amazon currently controls 76% of the U.S. digital books market, Pham gives a brief history of the tensions between the publishing industry and Amazon's efforts to keep bestselling book prices lower, with a $9.99 or less standard that "infuriated a number of established publishers, who feared that digital sales would undercut the lucrative hardcover market."

  Yes, think "The Big5" who did admit to fears that selling e-books at that price would 'devalue' their books, meaning their hardcover books.

  Here are some excerpts:

' ...And its promise in October to give authors who self-publish through its Kindle store a 70% royalty rate, far greater than the 25% in a standard publishing contract, spread fear and loathing throughout New York's publishing houses.

Some folks are irked that they can't easily transfer digital books they bought elsewhere into their Kindles.  Why did you choose a proprietary technology?

We chose a format that we felt would give us better performance and superior ease of use.  It's the reason why the Kindle has faster page turns than some of the other devices.  Because we control our own standard, we can develop applications that let customers read Kindle books on the iPhone, Android tablet, iPad, BlackBerrys and PC.
. . .

Publishers kicked up quite a fuss about digital book prices being too low. Can you actually grow the overall business by shrinking prices?

We think digital books should cost somewhat less than their print counterparts. When we controlled the pricing, we built the business around $9.99.  A small group of publishers have taken control of their pricing, and they've raised the prices.  It's not surprising that publishers who are raising prices are losing market share relative to publishers who decided to keep prices low.  Customers aren't stupid.  Ultimately, the market will drive prices.


Aren't you losing money by paying publishers 50% of the cover price for a $25 hardcover and selling it for $9.99?

Taking a loss on bestselling books is different than taking a loss on your overall book business.  We may lose money on bestsellers, but across the breadth of our catalog, we run a profitable, sustainable book business.


Do publishers now see you as a rival rather than a customer because of your self-publishing business?

We think the efficiencies of selling digital books should not only accrue to publishers but should also accrue to authors.  That means that the middlemen standing between authors and readers need to get more efficient, and they need to pass those savings along.  The 70% [royalty] rate we offer is a way to pass those efficiencies along. '

I left out quite a bit, of course, so be sure to read the full interview.


HOW MANY MILLIONS DID HARRY POTTER'S FINAL BOOK SELL?
For those looking for figures, Amazon insiders had already whispered, to Bloomberg last week, Kindle-device sales of 8 million by end of 2010.   The Daily Planet Dispatch's Martha Astbury and, it seems, every other newspaper, quoted the Amazon press release on the Kindle 3 having passed Harry Potter and the Deathly Hallows as Amazon's bestselling product of all time.

What would that mean?  Astbury points out that Amazon sold 2.5 million copies of that final book in the series (in its debut quarter, per MSNBC) when it was released in mid 2007, three years ago, "and it's safe to asusme they've sold quite a few since then."

Columnists have been trying to explain for weeks why, early this year, their dire predictions of the Kindle's death by iPad by end of 2010 were so wrong.

 The most curious one was by Nick Bilton of the New York Times, who outdid himself by yet again not getting it in that he "admits" that he was "wrong" and then lists a number of reasons why the Kindle is so popular with others (despite his own value system), BUT he doesn't even begin to mention the primary reason - the e-Ink technology that makes it SO EASY on the eyes relative to reading a long-form novel on an LCD screen.

  There ARE people whose eyes need a lot of contrast, and dark gray (or black in the Kindle 3) on light gray may not work for them.  But in reading the NookColor forum, I was amused to see people saying that they can read books just fine by choosing a color scheme that turns the white background to gray.  It does help not to have bright white coming at your eyes and I always turn down the background on my computer screens and my NookColor.

  Back to reading novels -- A novel involves serial, long-session reading of one word after another with no relief from web-browsing's shifting of eyes from this to that area or object.  On an LCD screen which is more or less, for some, like having a dimmed flashlight beaming into your eyes, long-form reading can be a bit fatiguing.  There are those who don't mind it.

  Younger eyes may have less trouble, but an e-reader that mimics the experience of seeing light on a paper book rather than into your eyes has been a real attraction for literally millions now.  There are countless posts on forums about how new Kindle-3 owners felt the words they saw upon unboxing their new e-reader were printed in boldface on something that should be peeled off the screen, only to find out that WAS the screen display.

 Instead, as usual with many tech columnists (gadgeteers by profession) who cannot imagine anyone valuing JUST reading rather than forever surfing, checking email, and watching movies, he cites only that it's lightweight, easy to use, "and most importantly, inexpensive."

Well, of course -- isn't that why all the $99 and other cheap tablets on the market are doing SO WELL? Because they're inexpensive? No, he again misses the point and doubles up on his wrongheadedness by ending with more advice to Amazon that the Kindle will have to get yet cheaper to stay viable -- because he can't imagine that a device just for reading books (primarily) could possibly be of much value to people when positioned against LCD tablets (as he does again).

Granted, if something like Notion Ink's Adam actually makes it to production, with a capability of paper-like display and LCD color in one package, then Amazon will need to adjust its focus, but that's just normal business development.

  Astbury (or her source columnist at MSNBC) gets it though.   She explains:

' Many of the new customers for the e-book readers already have tablets and love them for their touchscreens, their color and their multimedia uses, such as web browsing, movies and games.

But they still like to have a light-weight device they can use exclusively for reading, which doesn’t use up batteries as fast, and uses e-ink technology, rather than colored pixels, which forms a better image for reading... '

  I'm enjoying my NookColor for magazines and the web (WiFi only), but when I leave the house I take the Kindle, as it has free cellular 3G access, is easier to read in daylight (by far), is better for newspaper and book reading, and is very light.  The cost of it has nothing to do with why I choose it as the e-reader that's always with me.  It just provides more of what I personally like, but the NookColor is a great secondary reader despite many quirks which I've already mentioned in a past blog article.  One unusual item for other NookColor users to watch is a charger vulnerability that has 4 reports there.

Ah, it figures.  EWeek has two opposing columns on the Kindle-sales story: one that gives 10 reasons why Kindle sales keep growing, with people who want e-readers, and will continue to do so in 2011 and another column that "explains" that Bezos' statements about the happy co-existence of iPad and Kindle is probably due to his "anxiety" over the "looming threat of the iPad."


Kindle 3's   (UK: Kindle 3's),   DX Graphite

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Check often: Temporarily-free late-listed non-classics or recently published ones
  Guide to finding Free Kindle books and Sources.  Top 100 free bestsellers.
UK-Only: recently published non-classics, bestsellers, or highest-rated ones
    Also, UK customers should see the UK store's Top 100 free bestsellers.

Survey shows misunderstanding of iPad's place in e-reader market

The subject title of this piece belongs to TechGear's Tim Conneally, who is one of the very few writers who seem to have noticed the glaring flaw in the basic premise of the survey by ChangeWave Research which asked consumers which "e-readers" they were likely going to buy this holiday and presented them with the choices of the iPad, Kindle, Nook, Sony, A Smart, and "Other."

  The survey conclusions were regurgitated without any analysis by about 95% of the news stories on the first day.

  The iPad is the portable equvalent of a small computer that runs multimedia apps, and only secondarily is it used for reading e-books.  Has anyone ever expected that it would sell less than a dedicated e-reader which is by design a niche product?

  Never mind that although it was roundly predicted that the Kindle  (UK: K3) would be 'killed' or even entombed by the iPad (or, earlier, by the Nook) by the end of 2010, the Kindle is an item for which demand is so great since April that columnists often mention the error of those predictions and the now-obvious happy co-existence of the two types of very popular gadgets.

  Add that the consumers surveyed include those who would have little interest particularly in getting an e-reader and are drawn to the web-surfing, video, and games features of the iPad (per just about every other survey I've seen, most put the e-reading feature last).

 In other words, does any serious survey pit two entirely different types of gadgets against each other and declare a 'loss' for the one that offers one finely tuned capability at considerably less cost for those wanting that one capability?

  The basic question (as asked in this survey) of what "e-reader" a person might be interested in buying assumes that each participant is actually looking for an e-reader rather than showing an interest if asked -- though many will certainly be interested in an all-in-one.  Should they stop making dedicated, inexpensive printers because all-in-one printer/fax/scanners gaining ground on the less-costly, dedicated ones ?

  Should Canon stop making sub-compact cameras because the iPhone has a very good little camera in it?  Would a serious survey ask people to choose between an iPhone camera and dedicated cameras?

  Actually, the comparisons are based on expected hardware sales rather than on the actual way the hardware would be used.


TECHGEAR/TIM CONNEALLY'S PERSPECTIVE ON THIS
Here's some of what TechGear had to say about the survey:

' ... ChangeWave said Amazon's Kindle holds a "rapidly diminishing lead" over the Apple iPad in the e-reader market, and that the iPad's overall presence in the space has doubled since August.

[Yes, the iPad sold 3 million in 80 days -- and after that, Amazon's can't keep Kindles in enough supply for shipping to other countries without large delays.]

According to buying intent stated by consumers, ChangeWave also concludes the iPad "will be the biggest beneficiary of the expanding e-Reader market this holiday season, followed by the Amazon Kindle."

Naturally, this has led to headlines today declaring that the Kindle is somehow "losing" to the iPad.

Unfortunately, the entire survey is based on an unsound premise, because it seeks to compare hardware e-readers with software e-readers.
. . .
Interestingly, the survey goes on to illustrate exactly why the iPad and smartphones should not be placed in the same category as hardware e-readers.

ChangeWave asked consumers "which of the following types of content do you currently read with your e-book reader?"
  Unsurprisingly, the majority of Kindle users said they're reading e-books, while iPad users said they tend to read newspapers, magazines, blogs and RSS feeds.

  In short, this shows not that the iPad is stealing market share from the Kindle.  But instead that consumers who read e-books are buying e-readers, and consumers who read colorful and web-derived content are buying tablets. '

Yes, and one tablet in particular, but people are really taking to the Samsung Galaxy 7" despite Steve Job's insistence that people are not interested in that size tablet (rather like his earlier insistence that the Amazon Kindle was not going to work because "people don't read anymore."  And there is coming a rain of capable tablets in a month or two.
  UPDATE 12/2/10 - Already there is the Archos 101, a 10" tablet for ~$294.

COMMENTERS TO THE TECHGEAR STORY
Here are some really blunt and insightful comments to Conneally's story:

' ___
By Frankwick:
From a purist point of view the ipad (I own one) is a horrid e-reader.  It is too heavy to hold for long periods of time.  Plus, the screen is way way way too glossy in certain places which makes reading a pain in the eye socket.  As far as ibooks goes, it is miniscule compared to the nook and Kindle stores.  Then there is the cost of the ipad - OUCH! '

___
By skapig
E-reader versus tablet appliance with a very large difference in price between them.  Not the most well-conceived study, but the point is really to get the name of the research firm out there by pushing something with these popular keywords down the wire.

[ Exactly what came to my mind because it is such a carelessly designed study, but today's focus on getting stories out quickly more than anything else means the survey makers will get their name out there when stories are done for "first" announcement and then auto-duplicated wildly rather than the news-seconders actually looking at the story to see if there's anything there.

___
By alan@statistixl.com
Nice to finally find a breath of sanity in this debate :-)  I use both and they are definitely horses for courses.  The Kindle is vastly superior for prolonged reading and reading text (it's much lighter, easier on the eyes, has better batter[y] life and enjoys sunlight).  The iPad is much better for browsing the web and flicking through items that require colour. '

In the meantime, ChangeWave itself describes the following questions answered, in its brief online report

' Going forward, e-Reader demand remains strong for the holidays, with 5% of respondents saying they are Very Likely to buy an e-Reader and 10% Somewhat Likely over the next 90 days. '

Here's their full Consumer Electronics Report ($1,500).


Kindle 3's   (UK: Kindle 3's),   DX Graphite

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Check often: Temporarily-free late-listed non-classics or recently published ones
  Guide to finding Free Kindle books and Sources.  Top 100 free bestsellers.
UK-Only: recently published non-classics, bestsellers, or highest-rated ones
    Also, UK customers should see the UK store's Top 100 free bestsellers.

Amazon finally sells the Apple iPad itself. In stock w/ Amazon customer svc

Apple iPad is now being carried by Amazon itself rather than just through 3rd party carriers.

That second picture is of the $13.69 CrazyOnDigital Black Leather Case For Apple iPad, which is getting 4 out of 5 stars from 86 customers so far and apparently priced, retail, at $39.99.

The third picture is of the Apple iPad Keyboard Dock.

Added here, since many Kindle owners have iPads and many have been considering one for non-daytime-reading purposes.


Kindle 3's   (UK: Kindle 3's),   DX Graphite

---

Check often: Temporarily-free late-listed non-classics or recently published ones
  Guide to finding Free Kindle books and Sources.  Top 100 free bestsellers.
    Also, UK customers should see the UK store's Top 100 free bestsellers.

Best Buy to sell Kindles -- predicted here in April and confirmed

Most of you may have already heard the news that Best Buy will sell the Kindle 3's and, later on, the DXG.  (Thanks to KindleToday for the first report I saw.)

Some may remember that in the April 8 article here questioning whether the Kindle might be sold at Target at the end of April, the title also asked if Best Buy might also get the Kindle.

I had seen a long-time Best Buy employee commenting, on Engadget's site, that

' I have a feeling we are going to start selling the Kindle at Best Buy as well seeing as we just got cases for them in on the truck today. I find it hard to believe we will sell cases for a product we don't sell. '

Later on, in mid-June, more than two months later, tigerbeat wrote on the Amazon Kindle forums:

' Best Buy even had a Kindle cover and they don't even sell Kindles. '

So, it's come to pass :-)
 The Best Buy press release, carried by paidcontent.org, says that consumers will be able to

' compare all of the most popular reading devices by installing new end-caps that display its e-reader selection side-by-side, supported by helpful information about each device’s key features.  Best Buy is the only retailer to carry all of the top e-reader brands in-store so consumers can conveniently compare and decide which is right for them. '

  They are the exclusive retail partner for the Nook and will carry the new Sonys as well.

The first report I saw earlier (can't remember which publication) asked if this wasn't a gamble when the Kindle could be seen side by side with the more colorful and multi-functioned iPad.
 I've wondered when this type of columnist will start asking the publishers to start printing the text of their books in color instead of with black type on white.  But some do judge a book by its color cover.

Today, Mobile Computing compares the colorful, multi-featured iPad to the Kindle "with a dull E-ink screen" but recognizes that

' Where the Amazon Kindle and the iPad are in direct competition is in eBook reading, an area where the Kindle is currently the hands down winner. [Their emphasis.]
  The iPad’s heft makes for an uncomfortable, painful reading experience next to the breeze-light Kindle. Furthermore reading on a backlit LCD screen is a less fun.
  ...This is easy street for the Amazon Kindle. If reading a text-based book is what you’re looking to do, the Kindle runs rings around the iPad for comfort in your hands, comfort on the eyes and battery life, too.'

  That's their opinion although they feel the iPad is a "device that could very well define the future of computing."  Nevertheless, they say,
  "If you’re a book lover on a budget, Amazon Kindle without a doubt."


Kindle 3's   (UK: Kindle 3's),   DX Graphite

---

Check often: Temporarily-free late-listed non-classics or recently published ones
  Guide to finding Free Kindle books and Sources.  Top 100 free bestsellers.
    Also, UK customers should see the UK store's Top 100 free bestsellers.

Kindle Vs iPad - Which Is More Value For Money?

There are many questions raised regarding the differences between Kindle Vs iPad. These are the most popular brands of ebook readers chosen by active ebook readers. Below listed points are some compiled facts that Kindle DX is still much better than iPad as an ebook reader.

1. Kindle selling price is cheaper than iPad. The cost comparsion with the assumption of built-in 3G capabilities : Kindle 2 - US$189 , Kindle DX - US$489 , iPad - US$629.

2. Power consumption can limit where to read. Kindle device's power consumption is quite low and therefore it is suitable to read under direct sunlight. iPad may have power consumption issue under hot weather conditions. Its power consumption will need to be improved in order to catch up with Kindle.

3. The next factor is the unit weight for easy carry. Kindle device only weighs 10.2 ounces while iPad weighs nearly a pound and a half. This makes iPad less attractive to be used as book readers because people may be holding it for a longer duration when reading a novel.

4. It is better to do night reading via Kindle than iPad. This is because Kindle DX does not have any built-in backlight on it. Its display brightness works best for bedside reading in the night. On the contrary, iPad's brightness may cause tireness for the reader's eyes after some reading.

5. The size of the book resources can determine your reading scope. If you are an avid reader in many different topics, it is important to buy kindle as the right device because Kindle can support over 450,000 kindle titles and these can be further read via iPad application.

6. The size of magazine and journal resources is larger for the case of Kindle. The more popular ones like Economist, Atlantic, Times and Reader Digest can be read via kindle but not on kindle iPad applications. Kindle also supports the popular newspapers like The New York Times and etc.

7. Audio enabled reading feature of Kindle is not always necessary to use but it is handy to readers whenever they are buzying doing some other things. If the reader get tired after long hours of reading, this feature can be turned on to carry on reading. Kindle will make a good reading experience.

8. Order Kindle here to be bundled with free internet access in US and other supported countries.

9. Battery life implies the duration of mobile usage. Kindle battery can lasts nearly two weeks as compared to only 12 hours for the case of iPad battery. Usage duration is especially vital for active travellers on the move. It may not be easy to get power source for charging the reader battery in remote areas or onboard the airplane.

10. Book readers must also consider its readability under outdoor conditions. Most readers enjoy to read books during the day time under a tree or even under direct sunlight. Kindle hardware is especially designed to best read under direct sunlight and therefore it enables the ease of usage regardless of where the reader wants to read it. Like other smart phones, iPad does not read well under direct sunlight conditions.

Having said all the above good things of Kindle over iPad, they are mainly emphasised for better reading. If reading usage is not a big consideration, then iPad is still quite compelling. It is just another larger piece of Iphone. If one has a higher budget with lesser reading usage and more computing requirements, then iPad is certainly a killer not to miss.

Most media misrepresents Steve Jobs's statement on iBook Numbers

'Why Apple’s iBooks Numbers Are Meaningless.'

I saw this accurate headline from the New York Times article by Brad Stone before I saw the e-book market share numbers allegedly claimed by Apple's Steve Jobs and his merry band of high-pricing Big5 publishers :-)

He said, They said
  Then I noticed that what he said was different from the claims of a myriad of newspaper headlines that misrepresented his words (which I think was to be expected and likely yet another smart marketing ploy for Apple).
  Note that the slide label that Apple chose is what would be and was picked up by most.

Typical headline
An AppleInsider headline mimics the slide label: "Apple grabs 22% share of eBook market..." and states: "In the first 65 days, Jobs said users [of 2 million iPads sold] have downloaded more than 5 million books -- amounting to 2.5 eBooks for every iPad sold and giving Apple a near-instant 22% slice of the eBook market

But even the publishing industry's Publishers Marketplace, which keeps its articles behind a paywall, shows this much in the partial summary link:

' Jobs: Agency Publishers Say iBookstore Has 22 Percent Market Share ... Apple consistently talks about unit downloads (which include free books) rather than sales, and Jobs clearly spoke to e-book market share estimates from the ... '

The rest of that sentence would mention the domestic Big5.

Gravitational Pull, however, paid attention, in their headline, to "What Steve Jobs actually said about iBooks market share"

"Here’s what Jobs’ said yesterday in San Francisco:

"I’ve got a few stats today for you. In the first 65 days, users have downloaded over 5 million books and that is about two and half books per iPad which is terrific. The other interesting thing is the five of the six biggest publishers in the US who have their books on the iBookstore tell us that the share of ebooks now that are going through the iBookstore now is about 22 percent. So iBooks market share now of ebooks from five of these six major publishers is up to 22 percent in just about 8 weeks..."

So, Jobs did properly limit his description of iBooks “market share” as being just about US sales of ebooks by the five big publishers participating in Apple’s offering. With one biggie opting out so far (Random House) and no global sales included, the 22% figure obviously wildly overstates Apple’s real market share in ebooks.

So why were some people confused?  I’d say it’s all Apple’s fault.  First for not streaming Jobs’ keynote live to everybody and, second, for including the slide pictured at the top of this post which simply says 'Share of total eBook sales.'  That’s not accurate."

Right, and even Gravitational Pull didn't mention the effect from the Penguin Books negotations with Amazon over the last almost two months, withholding certain e-books from Amazon sales during that time.

Paul Biba of Teleread.com commented on this, and a few readers responded to the iBook numbers topic.  I added my own thoughts there and will include some of that here.

Re the average 2.5 ebooks per iPad downloaded in the first 65 days (preceded by half a year of frenzied media attention) and the notion of ‘considerable spending” on those books — it's worthwhile to remember that the iBook store has 60,000 books, 30,000 of which are *free*.

Now, when familes get a new iPad and are eager to try downloading a book, which type of book will likely be the first download?  Even the second download in some cases.

That’s without mentioning that from what some have seen of Kindle-book buying (hundreds for many on the forums), the 2.5 books average per iPad, downloaded in 65 days, is not high.  But, the dedicated e-book devices will attract a different set of book buyers — one with a more intense focus on just reading.

  On the 22% share of the e-book market idea, for the Big5 at least, not only did the largest of the Big 6, Random House, opt out of the Apple Agency plan and bookstore, but Penguin Group (the next largest, I think) did not make its newer and bestseller e-books available to Amazon for the last 1.5 months or so.  Skewed numbers there also.  Job's statement itself was actually precise but the presentation with the slideshow label smart enough that media headlines are screaming "22% of the e-book market," with ‘the general e-book market’ implied.

 As has already been said by Paul Biba, Brad Stone, and others, these numbers don't include sales outside the U.S. nor the fact that most small publishers don't sell books through Apple.  Stone notes that Amazon "has always been particularly strong at selling lesser known books in the so-called 'long tail'of publisher’s catalogs, many of which Apple does not yet carry."
 Apple has a product with a "wow" factor and has done well enough without inaccurate hype of a type that Alan Weiner, an analyst at Gartner, called “some sort of voodoo algorithm.”

---

Check often:  Temporarily-free late-listed non-classics or recently published ones
  Guide to finding Free Kindle books and Sources.  Top 100 free bestsellers.

Kindle and Tablets / E-book Pricing Wars

Kindles and tablet computers will co-exist, for many reasons.  At least this is what most columnists are saying this week, who have experienced e-Ink screens and know by experience how easy those are on most eyes (compared to LCD screens) with more long-session, sequential reading as in books (vs web-surfing w/lots of eye relief).

  Besides reading the various colummns today, I noticed Amazon's new? Kindle at beach ad.  And it's a good one, highlighting the small-form and how easy it is to read in direct sunlight.  Others enjoy reading their iPods or iPhones under the covers at night which don't, like e-Ink books, need external clip-on lights that can upset those next to them.

CRUNCHGEAR ARTICLE ON IMPACT OF THE KINDLE APP FOR TABLETS
CrunchGear's Matt Burns asks: "Kindle Apps for Tablet Computers: Is it the king of ereaders?

  Unlike the Kindle for PC and Kindle for Mac, both of which are bare-bones in their Beta state, the new Kindle App for Tablets takes styling cues from Apple’s iBooks, he says.  And he adds:

' This is huge.  No longer can the iPad claim dominance on the color ebook world.  The upcoming Kindle tablet program will be able to run on presumably any PC tablet and still sync to the other Kindle apps, mobile or otherwise.  Knock “color ebook reader” off of the iPad’s list of Pros. The tablet race just got a bit more interesting.

  Content is king in the world of ebook readers and Apple should know that more than any company. The App Store, with its tens of thousands of apps, is one of the main reasons the iPad is guaranteed to be a success.
  The same thinking will drive the Kindle Apps for Tablet Computers program.  Consumers have been buying books from the Kindle Store since its launch in 2007 and Amazon keeps making those books more accessible by releasing Kindle apps for different platforms.

  Consumers own this content and expect to be able to access it no matter what device they are using because of Amazon’s precedent.  Now they can read their books not only on the Kindle itself, but also a BlackBerry, iPhone, PC, Mac, and soon nearly any tablet PC. '

  Now here's the thing -- though he doesn't say it explicitly in this article, others have pointed it out.

ARE THE E-BOOKS READABLE ON OTHER DEVICES?
  While, as he says, Kindle books can be read on the Kindle, the Blackberry, iPhone, iPod, PC, Mac, and soon any tablet computer AND sync'd between them --
  iBooks won't be readable on anything but the iPad, though I imagine they have to be making a corresponding app to read iBooks on the iPhone and iPod (optimized for the smaller size) and certainly eventually on a Mac computer.

THE FOCUS OF THE COMPANIES
  Apple's a hardware company first though, while Amazon's a book and other-content company first.  It's hard to imagine iBooks available for Blackberry or PC's, as Apple's main focus would be on selling iPads, iPods and iPhones (and, secondarily, data plans with AT&T and others) rather than e-books with all the hassles with publishers.

  Amazon's customer service for the Kindle is noted not only for its flexibility with respect to exchanges for any hardware/software kinks, it has the same standards for its Kindle books.  Will Apple?

  Unlike with Barnes and Noble's nook, you can return a Kindle book for a refund within 7 days if the formatting is sub-par or if there are missing pages or tables of contents without links.  Not so with the Nook -- its e-books are not returnable.
  If unsatisfied with. or not liking, a Kindle itself within 30 days of it being shipped you, you can return it (undamaged) in its box for a full refund.
  With the nook, it's 15 days.  What's the policy with the Sony?  What will be the policy with the various expensive tablets, including Apple's?  Amazon's been very secure in these areas.

Mann brings up another scenario.  He feels the availability of the Amazon Kindle app for Tablets "doesn't mean that it will ever hit the iPad.  Technically it’s up to Apple whether this app will run on the iPad and Apple’s track record doesn’t make its future look all that promising."

  He points out that iBooks will be a key feature of the iPad, just as Safari and iTunes are to its iPhone/iPod, but Apple has not approved the Firefox Mobile or Opera web browsers for them.  I think Amazon may have cleared it with Apple since its Kindle apps ARE on the iPhone/iPod.

  If not, there are various tablets coming out very soon, at least two of them far more capable than the iPad, which was intentionally somewhat crippled to keep its WiFi-only model priced low enough (no USB port, no multi-tasking, no SD slots, no webcam, no flash support -- no Hulu or ESPN video then).  The other models will have these and cost no more, or will cost less.  It wouldn't be good for Apple if Amazon books were available on other tablets but not the iPad.

CONTINUING E-BOOK PRICING WARS
As you'll have seen in earlier articles here, Apple has pushed for higher pricing via publishers setting selling-price rather than wholesale price, with Amazon/Apple to be acting as 'agencies' under the Apple plan.  Five of the six large publishers dove in, eager to get the guaranteed pricing, as Apple insisted in their agreements that no other bookstores would be allowed to sell at lower prices than theirs.

  Then Apple turned around and attempted (apparently successfully) to insert language into their own Agency plan with publishers, that would let Apple sell "hottest" titles at $9.99.  Note that "hottest" is synonymous, in the business, with the New York Times Bestsellers.

  Publishers (not Random House) who bought the Agency plan (and are trying to foist it on Amazon) HAD been getting $12.50 from Amazon on a $25 List-Price book, sold by Amazon for $9.99 (as loss-leaders), with the traditional wholesaler plan.

  Now, on books that sell for $9.95 at Apple, Jobs has publishers in a predicament because they would get only 70% of that $9.95 price -- or $7.00 rather than the $12.50 they would have gotten from Amazon under the traditional arrangement as opposed to Steve Job's "Agency" agreement.   How does $12.50 look against $7.00?

  Jobs might have negotiated a deal whereby the publishers who allow this would still get 70% of their desired pricing of $15 -- or $10.50, which would mean Apple would take a loss there (is this likely?) while the Publishers would get $2.00 less per sale than they would have with Amazon under the most favorable scenario for the publisher.

Now, again, who is setting the price?

UPDATE - Confirmation that Random House is Smarter on this
Random House is still not signed onto the Agency idea for the reasons cited in the linked article and wants to consult with stockholders and authors first:

  1. The agency model "lets the company take preset commissions on sales."
  2. "Apple would have the publishers put the price-tags as paid by customers, something which doesn’t seem to be [a] lucrative proposition to Random House executives."

"LEAK" ABOUT APPLE iBOOKSTORE PRICING ON NY TIMES BEING $9.99
The above speculations are due to AppAdvice's Alexander Vaughn "revealing" iPad iBooks pricing for the NY Times Bestsellers, in that he was at a preview of the iPad Bookstore and has a picture of the pricing shown at the presentation.  He does say it was a "not-so-NDA-complying preview."

  He reports that of the 32 e-books featured in the NYT's bestseller's section, 27 of them, including the entire top 10 are priced at $9.99.

Again, this means that Apple would pay the publishers $7 of the $10 OR if they applied the 30% to the publishers' WANTED selling price ($15), then they'd pay the publishers $10.50, losing money on each book.  Is that likely?

IN THE MEANTIME
Amazon would be making $3 on each NYT bestseller instead of losing $3.50 on each, using the 'Agency' plan Macmillan and others have been negotiating.

Gizmodo's Matt Buchanan writes about the "Supposedly Leaked" pricing and points out that the highest priced e-book of the 32 bestsellers mentioned is Poor Little Bitch Girl by Jackie Collins, going for $12.99 - but the Kindle counterpart is only $8.83.

So, who is (not) matching whom?  I think some are missing that Macmillan's new agreement with Amazon was to start April 1, not now (though people have noticed e-book pricing inching up).  So it's difficult to determine who is setting the price and matching whom in April.  And it would be very time-consuming to monitor and regulate between all the bookstores.  This is what the large publishers have bought into though, while attempting to set fixed higher pricing to be the same at all stores (per Apple).

WHY THE E-BOOK EXPLOSION
Authorlink discusses the new IDPF survey and points to a few articles on the explosion of e-books.  One is TBIResearch's headline by Rory Maher that Here's Why Amazon Will Win The eBook War: Kindle Already Has 90% eBook Market Share.  Read his article to see all the implications if Amazon continues to lead after the next half-year.

Authorlink also points to the main article about the e-book explosion by Mark Coker, CEO of Smashwords, an already very influential e-book publisher, who sums things up with:

' Why are consumers going ga ga over ebooks?  Back in October, I blogged some of the reasons in my Huffington Post piece, Why Ebooks are Hot and Getting Hotter.  I listed several reasons, such as the proliferation of exciting new e-reading devices; screen reading rivaling paper; content selection; free ebooks as the gateway drug; lower prices; and great selection.

If we boil it all down to what really matters, it's about customer experience.  People who try ebooks are loving ebooks. '

And what many have left out of their predictions is the very real difference between reading books (not web images and short articles) on an e-Ink screen and on a larger LCD screen.

Then there is the $259 price for the 6" Kindle with which you can download a book immediately from almost anywhere with no web-data charge vs the $500 price for the iPad which will not have that downloadable-from-anywhere feature unless you pay $630 for the tablet plus a monthly fee for web data.

  But it's not an either/or. Many Kindle owners plan to buy the iPad also (or another tablet) for fast, colorful, portable web-browsing and fast email.

---

See the ongoing Guide to finding Free or Low-Cost Kindle books and Sources
Also, a page of links that confine searches to mid-range priced e-books.

More iPad challengers: WePad and ZenPad

iPad challengers are gathering outside the castle.  Besides the Dell Streak and the Adam by Notion Ink, both described here March 10, there is the amazing-sounding WePad (shouldn't that be "wePad"?)Android device to be released soon in Germany by Neofonie,

 While the iPad will have the Golden Apple clout, the WePad will have an even bigger (11.6") multitouch screen and a faster CPU and promises the following features that are missing in the iPad:

' [It] runs Flash, has USB ports, an inbuilt card reader and expandable memory.  Additionally it allows complete multitasking and has a webcam. '

Neofonie GmbH is a 12-yr old software company that also runs a search engine called WeFind and sells an e-publishing platform by the name of WeMagazine. It makes newspapers and magazines readable on computers and smartphones, and they see as the real business for their WePad tablet PC.  They are planning to undercut the iPad in price.  Supposedly, it's for release fairly soon.  It's not being marketed as an e-book reader, as there's no mention of that, but the chart indicates that the file formats it can read include "all open standards" which would mean, for now, almost no current books with rights-protection (DRM) until they partner with a bookstore or add Adobe's Digital Edition (unless I'm missing something there).
  See the comparison chart on their site.

 And there's a very low-cost one gaining considerable interest - the ZenPad by Enso.  It's only 5" so and, like the far more expensive Dell Streak, it's pocketable.

  Priced at $155 and shipping now, the 800 x 480 Android 1.6 tablet with 8GB of storage (on a replaceable microSD) comes with GPS for an additional $25.   Powered by a 667MHz Samsung 6410 processor, with about six hours of battery life, it has WiFi built-in while an external 3G cellular wireless adapter is just another $35. As Engadget says, "a fully max'd out unit with GPS and 3G would set you back $210 -- plus $25 for shipping."  Engadget also says that commenter 'Raikus' writes that it appears to be a rebrand of the Smit MID-650.
  There's a video at that site of the Smit but the videoclip itself is labeled the 'Archos 7 Home Tablet' while showing what is clearly a "MID-650."

I'm interested in a smaller carry-about device but I'd want to read reviews of it before deciding to plunk down even $155 or $210.  I'm also not interested in an expensive monthly data plan and I already have a great GPS unit.  But we will have a lot to choose from in the next half-year if wanting a portable web tablet.  The idea of carrying something small that does not have 3G wireless becomes strange though.  Makes me appreciate even more the ability to look up web info on the Kindle w/o having to pay for a monthly plan, though there is no colorful pizazz in that.

Macmillan hard cover books return

NY Times: Macmillan Books Return After Dispute.  Brad Stone and Motoko Rich report on the end of negotations, though it's not clear what was successfully negotiated.  

They write:

' So what did Amazon hold out for?  The company would not comment, but it is likely that Amazon demanded that no other e-book vendors, such as Apple, get preferential access to new titles, or any kind of pricing advantages.
  Amazon may also have negotiated terms into its agreement with the publisher that would allow users of Kindles or Kindle software to lend e-books to each other. '

Emphases mine.  The words 'likely' and 'may' are used to mention concessions, the concepts of which wouldn't have come from thin air.  It seems the NYTimes probably got SOME kind of word but isn't free to say so outright.

Also, while hardcover books are back, the Kindle edition copies have not shown up as of mid-Friday evening.

OTHER NEWS REPORTS - Follow links for full stories
1. Why (And How) Apple Killed The $US9.99 Ebook

' Publishers joining Apple’s iBooks store are turning their back on Amazon and its vision of the flat $US9.99 ebook. Apple forced the music industry to charge 99 US cents per song, so why are they helping publishers set their own prices?

To screw Amazon. '   [From Gizmodo.com]

2. Apple iPad Helps Publishers Get Better Price from Amazon

' Gizmodo reports that the move could mean the end of the $9.99 book.  The conventional wisdom is that publishers will set the ebook prices first proposed by Apple—from $12.99 to $14.99.  I suspect that Penguin and Simon & Schuster will follow suit and that Amazon will be forced to migrate to the agency model and match Apple pricing.'   [From beforeitsnews.com]

3. Epicenter The Business of Tech Panacea or Poison Pill:
    Who Gets to Decide About $10 E-Books?

' Hachette has become the third major publisher to publicly denounce Amazon.com’s $10 e-book model.  It joins Macmillan and HarperCollins in what seems now like the death blow to a price point that had less to do with the inherent value of the content than it did with finding a magic number readers could not resist in droves. '   [From wired.com]

It's Friday night and Len Edgerly's The Kindle Chronicles weekly podcast is up, with the final part of the 2-part interview with Forrester's James McQuivey, a vice president and principal analyst at Forrester Research.
  The first part is at Len's The Reading Edge podcast, which reports on all e-readers -- this last week's podcasts being especially germane, as mentioned in the last blog entry here. Part 1 of a 2-part interview there is titled "Amazon Brings a Knife to a Mud Fight."
  In Part 2 James McQuivey also shares his thoughts on the Apple’s new iPad's place in all this as well as what the next Kindle may shape up to be.

The Macmillan and iPad Effect on the Kindle

At a time when the large publishing houses are rushing to charge Kindle customers 50% more for e-books because e-books are "cannibalizing" hard cover sales (yet they like to dismiss them as a tiny percentage of book sales), some Kindle owners -- especially new ones, for whom the $10 bestseller Kindle book price was a lead feature -- have wondered out loud if they should not have bought their Kindles.

In a current forum thread, Kindle owners are asked if they would take an offer at this point to return their Kindles to Amazon for a refund (not that this is being offered but Amazon does have a 30-day return policy).
  The resulting forum discussion is an interesting read.  Click on the link to read it.

A really interesting Listen is this week's edition of the new, weekly Len Edgerly The Reading Edge podcast, which reports on all e-readers -- this week's podcast being especially germane: Part 1 of a 2-part interview with James McQuivey, a vice president and principal analyst at Forrester Research.  It's titled "Amazon Brings a Knife to a Mud Fight."  Edgerly mentions that

' He also shares his thoughts on how Apple’s new iPad figures in to all this.

 I’ll have the second half of this interview on The Kindle Chronicles episode 81, which will be uploaded as usual on Friday, February 5.  In that portion, James will discuss what he and his teammates at Forrester are calling “The Kindle Flame,” by which they mean the next generation of Kindle that might, if it gets certain things right, set the eBook market fully ablaze as opposed to merely kindled." '

I also browsed news articles analyzing the effect of the last week on Amazon and the Kindle.  Here are excerpts from a few:

BARRONS - "Amazon's Overblown E-Book Tussle" Excerpts:

' We believe concerns over the impact of the potential change in e-book pricing and Apple's (AAPL) iPad launch have been overblown.

Even if all of the publishers move to the agency model, which is unlikely, we still expect Amazon to capture a large share of the e-book market. We also expect physical book sales, in which Amazon has a leading market position, to significantly exceed digital book sales for at least the next five years. In addition, the iPad costs two to three times more than the Kindle, and its liquid crystal display screen provides an inferior book-reading experience...
. . .
Among our takeaways is that Amazon will likely sell fewer titles at higher prices and a higher margin from publishers instituting an agency pricing model. Some publishers are likely to maintain the current wholesale pricing structure in order to capture share, which could put pressure on companies using the agency model. '

To read the full article, click the top result of the linked Google results page if you're not a subscriber yet.

PAIDCONTENT - BARCLAYS CAPITAL
- "More Than 3 Million Could Be Sold This Year: Analyst"

' ... according to updated estimates from Doug Anmuth, analyst at Barclays Capital, in light of Amazon’s Q4 results and recent accounting change. Anmuth says he estimates 3.1 million Kindles will be sold this year ((62 percent growth Y/Y)
. . .
- Increased competition from the iPad, but Kindle is significantly cheaper & will continue to appeal to somewhat of a different market given the e-Ink screen, smaller form factor, better battery life, & lower weight.

- While the recent pricing dispute with Macmillan could signal a broader shift toward an agency model of eBook distribution, we believe higher margins will partially help offset the lower volume resulting from higher eBook prices. '

(See the customer forum thread mentioned, for reactions to how they plan to deal with this this.)
  At the general Amazon Kindle discussion forums, you'll see an avalanche of reactions, which include authors from Macmillan adding their input, with the unfortunate result that too many wind up alienating customers via posts that are hostile to the customer reactions to the 50% price increase for Macmillan, and likely for Rupert Murdoch's Harper-Collins as well as Simon & Schuster, all making similar noises to Macmillan's now.

SEEKING ALPHA - Interesting Stock market results for Apple

' Apple’s (AAPL) revenues surged 32% on better-than-expected computer sales. It beat its earnings estimate by $1.60 per share. It even introduced the iPad, a new product it hopes will take market share from Amazon’s (AMZN) Kindle. After an initial rally, the stock dropped 5% below where it was before the company announced all this news. '

TUAW (The Unofficial Apple WebLog)
"HarperCollins pressuring Amazon to hike Kindle prices"

I guess the below does again explain why Steve Jobs was so cocky in announcing in that video that Amazon and Apple's iBookstore would have the same prices despite the current $5-lower Amazon pricing:

'...now HarperCollins is putting the pressure on that same site to raise eBook prices from $9.99 up to $14.99 or higher. Amazon finds itself in between a rock and an iPad -- if they don't give in to publishers' demands, they could find themselves abandoned for an exclusive Apple deal, but if they do raise prices, sales will start dropping even before the iPad appears. Jobs predicted about this much last week in an interview with Walt Mossberg, saying that publishers would run afoul of the Amazon store, and Jobs would be more than happy to pick them up in iBooks.

. . . At the Apple event the other week, Jobs said on stage that prices on the Kindle and the iPad for books would be "the same," so while fleeting images of the iPad showed bestsellers at around $10 (which is what Amazon charges), it's possible that Jobs would go with the $14.99 price to woo publishers over to his side. '

[ Methodology: In asking the publishers to raise the prices, as he did, Jobs wouldn't care how few he sold, only the margin for each.  In Apple's case the focus is on the hardware. ]

THEWRAP - "Amazon Slow to Restore Macmillan Titles"

' . . . It's now been four days since Amazon said it would reluctantly “capitulate” to Macmillan, and though the publisher's books began to trickle back onto the site Tuesday, many titles were still unavailable for hardcover purchase directly through Amazon’s store.

Whether Amazon was being passive-aggressive or just lazy isn't clear. But Amazon's snit with Macmillan is just only the tip of the iceberg: Not only has Apple said its iBooks store will charge $14.99, but News Corp. chief Rupert Murdoch said on Tuesday's call with investors that he doesn't like HarperCollins' deal with Amazon -- and may challenge the bookseller's discount pricing, too.
. . .
Apple intends to price e-books at $14.99, essentially siding with book publishers in the hopes that they’ll cut deals with the iPad for exclusive releases, putting a dent into the Kindle’s market dominance. ("Publishers will actually withhold their books from Amazon," Steve Jobs told the Wall Street Journal, "because they are not happy with the price.")

But will Apple’s Kindle-killer strategy work?

That question could ultimately depend on e-book customers. There’s already a small movement organized by Kindle enthusiasts to boycott any e-book that is priced over $9.99.

“I think Amazon has quite successfully burned the $9.99 price point into the brains of digital readers,” said Jason Boog, editor of mediabistro.com’s book industry blog, GalleyCat. “If people are actively organizing boycotts against a certain price point, for better or for worse, Amazon has already won the price war.”

Boog predicts publishers “will be forced to offer a bare-bones $9.99 eBook edition for most books, and then build fancier ‘enhanced’ e-books for tablet computers and sell for a premium price... '

The next week should be interesting.