Will iPad challenge the Kindle?
Now that the dawn of the iPad is upon us, the inevitable comparisons between Apple's wundertablet and the Kindle--and what it all means for Amazon--have begun in earnest.
For example, in its write-up of the iPad launch, The New York Times said that Apple's new deals with five major publishers basically amounted to a declaration of war. "The announcement puts Apple on a collision course with Amazon," the Times said. And Steve Jobs, while praising Amazon for pioneering the e-book category, told the world that, "we are going to stand on their shoulders and go a little bit farther."
That may very well be true, especially when it comes to stuff like comic books, graphic novels, textbooks, and interactive children's stories, but the war we're looking at isn't the war we're used to seeing in the consumer electronics world, where one piece of gear is simply superior, sexier--and better-priced--than another.
From the get-go, as soon as rumors surfaced about an Apple tablet, many a tech pundit made his or her readers aware that such a device would make for a very strong e-reader. After all, since the iPhone and iPod Touch are already good e-readers, it was pretty easy to assume that an Apple tablet would be that much better because it had a larger screen. And no doubt it will be.
The only big caveat was price. However, with Apple announcing that its entry-level 16GB Wi-Fi-only iPad would cost a mere US$499, its tablet becomes an even more direct competitor to the Kindle. The starter iPad will cost only US$10 more than the Kindle DX, which has the same size screen as the iPad (9.7 inches). But the DX doesn't do color or a fraction of the things the iPad can do. Heck, it doesn't even have a touchscreen. And that would lead one to believe that the Kindle DX--along with more expensive E-ink e-readers like Sony's US$399 Daily Edition, the upcoming Plastic Logic Que, and the Skiff Reader--are a seriously endangered species.
On the other hand, the standard US$259 6-inch Kindle, which we used to call the Kindle 2, continues to be quite viable, though Amazon would be smart to shave its price to US$199 the day before the iPad officially starts shipping (Apple says buyers will have the iPad in their hands within the next 60 days).
Aside from price, the Kindle has a few things working in its favor: Its non-backlit E-ink screen helps reduce eye-strain and is also very energy-efficient, allowing you to get up to two weeks of battery life (without the wireless turned on). By contrast, Apple rates the iPad as having up to 10 hours of battery life. Having to recharge after a day of heavy use certainly isn't that big a deal, but a lot of Kindle owners like the fact that they don't have to think about recharging every day or two.
All that said, the real story here isn't the hardware, for at the end of the day, Amazon doesn't care about the hardware that much. What it wants to do is sell e-books, which don't take up warehouse space, require trucks to be delivered, or an expensive customer service team to support. And it wants to sell lots of them.
Naturally, it would like people to buy and use its Kindle e-reader, which it's invested a lot of time and money into and will continue to improve, especially now that Apple has its slick iBooks e-reader app. But its strategy has always been about getting the Kindle platform onto as many devices as possible. And in those terms, it's just fantastic that Apple has gone ahead and put out an excellent e-reader and is promoting the hell out of its e-reading capabilities.
Yes, the iPad's more open in terms of what formats it supports and will be much better at displaying PDF files than any Kindle (or any other e-reader for that matter) is. As far as Amazon's concerned, who cares? Assuming the Kindle for iPad app works the same as the existing iPhone app, Amazon's feeling pretty good. (Kindle for iPhone remains the top free download in the books category on the iPhone--and has been for a long time.)
Did Amazon tell me this? Of course not. Amazon's about as tight-lipped as Apple is when it comes to forward-looking information. When I asked Amazon spokesperson Andrew Herdener about a Kindle app for iPad and whether Apple would allow it on the device (Apple did say that all current iPhone apps would work on the iPad, so I assume it will allow it), I got a nice, prepared-statement-sounding response.
"Customers can read and sync their Kindle books on iPhones, iPod touches, PCs, and soon Blackberrys, Macs, and iPads," Herdener emailed me. "Kindle is purpose-built for reading. Weighing in at less than 300g, Kindle fits comfortably in one hand for hours, has an E-ink display that is easy on the eyes even in bright daylight, two weeks of battery life, and 3G wireless with no monthly fees--all at a US$259 price. Kindle editions of New York Times Bestsellers and most New Releases are only US$9.99."
It doesn't take too much reading between the lines to see the little jabs. The comment about weight (the iPad, at 680g, would be difficult to hold in one hand for long periods), the extra cost for 3G on the iPad, and the e-book pricing are all worth noting.
If you didn't already know it, Amazon is pricing e-books very aggressively. It's being so aggressive that it actually loses a couple of bucks on most new releases and bestsellers because it buys books from publishers at somewhere around a 54-percent discount off the list price of the book. So if a new hardcover costs US$24.95, it's buying the book for around US$12 and selling it for US$9.99. It doesn't believe customers are willing to pay more than US$10 for an e-book, which I agree with, but it's got publishers worried that Amazon is devaluing books to the point that people won't want to buy any books, including hardcovers, for more than US$10. (Word is Amazon is able to make up its losses by selling backlist titles and assorted other books at a nice profit margin).
Apple, meanwhile, has struck deals with the aforementioned five major publishers--Hachette, Penguin, HarperCollins, Simon & Schuster, and Macmillan--that apparently give those publishers more control over pricing their e-books and potentially give them a bigger cut of the overall sale. Though I understand publishers' concerns, pricing e-books higher isn't a recipe for selling more e-books (or hardcovers), particularly if Amazon is willing to continue with its loss-leader pricing strategy.
If book publishers and print media companies think Apple's the right company to get in bed with to improve their fortunes, they may be in for a surprise. The Apple App store is about volume and cheap prices (just ask game companies). Sticking books on there for US$13.99 instead of US$9.99 isn't going to work and will just play to Amazon's hand. And that may just mean a lot of folks will end up buying an Apple device to read on, but turning to Amazon for their e-books, whether they be black-and-white text-only affairs or the fancier color, interactive stuff that's certainly coming to the Kindle Store by the end of this year.
I don't know about you, but I don't mind. Let me know what you think. Is the iPad a Kindle killer? Or is it a Kindle helper?
Via CNET
Latest comments
My 2nd take of the subject is that Apple is only preserving the iPod Touch product line, since most customers are buying iPhone instead. If only add in bigger screen and battery to achieve double/triple profit margin isn't a bad idea. Kindle is aiming at niche market segment at the starting line, their success is base on the tight integration with their publishing business. Steve Jobs loves volume business and will invite partners and developers to value-add the iPad. They are running together but not on the same track. Andry, I believed Amazon signed the contracts with many global mobile operators for the access of local 3G networks. If I need to download a book from Amazon, I will be charged for additional US$1.99 local network access charge. But I pay nothing if I browse Yahoo or any other web sites. Cheers
David, if the book is in color, the e-book is also in color. What we see on the Kindles are in grayscale due to the e-ink's use of b&w. When we read the same e-books on our free Kindle for PC applications on our laptops or desktops, the books are in color. I don't see the 6' Kindle Global being particularly affected - there is too much of a difference already, including the fact that the $259 includes free 24/7 Internet access in the U.S. and in several other regions, while most countries getting the Kindle have, at the very least, direct free access to Wikipedia at all times where wireless access is available. Searches can be done from a word or a phrase in the ebook being read. The DX is another matter. sgbox, is Singapore officially on the Kindle now and getting full wireless? I'd heard they were beta testing the free web-browser access over there but had not heard more. - Andrys kindleworld.blogspot.com
My 2nd take of the subject is that Apple is only preserving the iPod Touch product line, since most customers are buying iPhone instead. If only add in bigger screen and battery to achieve double/triple profit margin isn't a bad idea. Kindle is aiming at niche market segment at the starting line, their success is base on the tight integration with their publishing business. Steve Jobs loves volume business and will invite partners and developers to value-add the iPad. They are running together but not on the same track. Andry, I believed Amazon signed the contracts with many global mobile operators for the access of local 3G networks. If I need to download a book from Amazon, I will be charged for additional US$1.99 local network access charge. But I pay nothing if I browse Yahoo or any other web sites. Cheers
...I don't see iPad as a threat to any e-ink device...it simply is impossible to do sustained reading of a book on a LCD screen...my concern is that many people are unaware of this and will fall for the hype Apple is trying to generate for the iPad as a book reader...people falling for this will be very disappointed when they find how uncomfortable reading on a LCD screen is...and then that will reflect negatively on all other e-readers...here we are, on the verge of a revolution in reading perhaps comparable to the printing press, facing a step backward because Apple feels compelled to come up with some new product to sell...
I guess it's the choice of priorities.. If you read lots of books, even on the move, you go for Kindle 2 - no problem under the sun, and the ever lasting battery is a great plus. Ad not to mention free wireless access. Yes, it works in Singapore! (you can buy locally http://www.3vdist.com/en/new-arrival/26/flypagetpl/shopproduct_details/67) If you love your iPhone and read books occasionally, the bigger iPad screen with colors will attract you more. In addition, you can watch movies and run other applications.
Kindle or e-book reader using e-ink is still my choice over iPad, since I prefer dedicated devices for dedicated jobs. iPad is more of an entertainment device than a reading device to me, and its pricing point is certainly going to be always higher than any e-book readers available out there in the market. Plus, reading on an LCD screen is hell of a pain to the eyes, and e-ink is way better on this.
I will be buying one of these over the Kindle (or my first choice which was the Sony e-book reader). It's not just about the books. It's the whole package. I have been putting off buying an e-book reader in anticipation of the iPad being all that I hoped it would be, and luckily for me, it's all that and more. I'll probably download the Amazon Kindle app though, so I have an option for buying my books!
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