Amazon amzn will begin selling a jumbo-screen Kindle electronic reader this summer. But the book is still open on whether the students and newspaper readers that Amazon is targeting will embrace the Kindle DX's $489 price tag — or whether the device will help fortify the ailing media business.
The DX has a 9.7-inch display, vs. the 6-inch screen of Amazon's Kindle 2 model. The larger screen makes reading electronic versions of newspapers, magazines, textbooks, even sheet music, more palatable than on the $359 Kindle 2.
The DX is better for reading personal and professional documents that have charts, tables and graphs, Amazon CEO Jeff Bezos said in an interview after the unveiling of the device here.
Is the price worth it? "At $489, that's a lot for a consumer to bear," says Ross Rubin, director of industry analysis at researcher NPD Group. Avi Greengart, mobile devices research director at Current Analysis, agrees: "Broadening the product line is usually a very good thing. But in this case, they're broadening the line up rather than down. And the line started at a very high price."
Bezos concedes that Kindles are "very expensive to manufacture." But he says, "They are not expensive to own." His reasoning: Kindle owners don't pay any fees associated with the cellular Whispernet service that lets them search for and fetch purchased books and periodicals from the wireless Kindle Store in less than a minute.
Still, Amazon and its partners are experimenting with cellphone-like pricing models. The New York Times, Boston Globe and The Washington Post are planning pilot programs this summer to offer the Kindle DX at a reduced cost to customers willing to commit to long-term subscriptions. These will be customers who live in areas where same-day home delivery isn't available. Bezos says to stay tuned for details.
Much has been made of the role electronic readers such as Kindle (or coming rivals) might play in helping newspapers and magazines.
Edward Atorino, media analyst at Benchmark Capital, says Kindle DX "won't move the needle for companies with multimillion-dollar revenues. It'll take a long time to mean something."
Scott Anthony, president of Innosight, an innovation consulting company, says no "individual platform can be the savior for the (newspaper) industry. But it presents possibilities for those who think in new and different ways."
Adds Zachary Seward, assistant editor of the Nieman Journalism Lab at Harvard: "There's about $2 million in revenue now coming to The New York Times and Amazon together from subscriptions on the Kindle. ... But there's a ceiling. The age of current Kindle users is about the same as for newspaper readers."
Going to college
The new Kindle may get a lift from campuses. Arizona State University, Case Western Reserve, Princeton, Reed and the Darden School of Business at the University of Virginia will launch trials to make Kindles available this fall to students.
Amazon also struck deals with textbook publishers Cengage Learning, Pearson and Wiley, which plan to sell textbooks through the Kindle Store. Could DX be a game changer for textbooks? "It could," says Rik Kranenburg, president of McGraw-Hill's Higher Education group. "What's good about it is raising the profile of e-books. We're trying to figure out what works."