Online retailer Amazon has announced an assault on the mobile content space with the launch of ‘Kindle’, a wireless-enabled electronic book. Kindle will be available from November 29 in the U.S. The gadget is an Internet terminal with a large screen and embedded software that allows users to download new books and other content. Kindle will retail for US$399 and is connected to Sprint Nextel’s EV-DO network. Data charges are included in the price of the ebook. A typical bestseller or new release will cost around US$9.99 and should be downloaded in less than a minute, Amazon claims.
Analysts have given the product a mixed response. “The idea that the ‘essential plumbing’ is handled by the device manufacturer means that consumers simply pay the price on the box,” said Ovum’s Steven Hartley. “This certainly makes the consumer proposition far simpler, although the scenario of the operator becoming merely the bitpipe is brought a step closer.” Hartley also warned the Kindle faces an uphill struggle for success. “According to the Association of American Publishers, less than 1 percent of sales by US publishers in 2005 were ebooks…. Certainly Amazon is pushing content hard with bestsellers retailing for US$9.99 or less compared to the hardback average of US$25, but Amazon’s ebooks cannot be shared like a printed edition.”