Picture of the new smaller, black $139 Amazon Wi-Fi Kindle

If you want to buy Amazon’s new $139 Kindle, click here!

Amazon lowered the price for the Kindle Wednesday — for a newer model with only Wi-Fi access to the Kindle store (and with only Wi-Fi surfing when using the Kindle’s web browser). All the other Kindle models still have their built-in access to the online world, so they’re always ready to surf the web and shop for books — anywhere and any time. But this new Kindle has other advantages — like running for up to one month on a single battery charge. And it weighs just 8.5 ounces — “less than a paperback,” Amazon argues — making it 17% lighter than even the smallest of the original Kindles.

There’s also twice as much storage space — holding up to 3,500 books — and Amazon promises the new screens can display pages 20% faster, and offer “50% better contrast than any other e-reader.” But best of all, this settles any question about whether Amazon might give up on selling the Kindle, and focus solely on selling ebooks. “The hardware business for us has been so successful that we’re going to continue,” Amazon’s CEO told the New York Times.

Wednesday they’d contacted Jeff Bezos at Amazon headquarters, and heard his strong commitment to continuing Kindle sales. “I predict there will be a 10th-generation and a 20th-generation Kindle,” Bezos announced. “We’re well-situated to be experts in purpose-built reading devices.” And while touting the lower price, he also found a way to highlight the fact that — unlike the iPad — the Kindle is perfect for reading outdoors. “At $139, if you’re going to read by the pool, some people might spend more than that on a swimsuit and sunglasses…”

I think Amazon will also attract people who are curious about the Kindle, but don’t want to risk a lot of money. (In a few months, the prices should drop even lower if you’re purchasing a wi-fi Kindle that’s used or refurbished.) And of course, it will make a perfect birthday gift. (I wonder if you can purchase it pre-loaded with gift books!) In fact, Amazon is already describing the Kindle as “the most-wished-for, most-gifted” item in their vast online store, and they’ve revealed that the Kindle “has the most 5-star reviews of any product on Amazon.”

But hearing the news today, I’d remembered a blog post I read in June. “Don’t worry about touchscreens or color or even always available internet to download new books,” argued marketing guru Seth Godin. “Make a $49 Kindle. Not so hard if you use available wi-fi and simplify the device…” Amazon may not have lowered their prices to $49, but they definitely swapped in the cheaper Wi-fi connectivity, and the lower prices should attract even more readers to the Kindle.

In fact, there’s fierce competition now in the market for digital readers, and the Kindle’s survival might depend on how cheap they can get! “You either become the best and only platform for consuming books worth buying or you fail,” argues Godin’s blog post. “And the only way to create that footprint in the face of an iPad is to make it so cheap to buy and use it’s irresistible. I saw a two-year old kid (in diapers, in a stroller), using an iPod Touch today. Not just looking at it, but browsing menus and interacting. This is a revolution, guys.”

But as every age group starts to embrace the arrival of electronic readers, Amazon is still fighting hard to be perceived as the best deal in town.

Interested? If you want to buy Amazon’s new $139 Kindle, click here!

Newsweek just published what’s almost a rebuttal to my last article. My headline: “Will the iPad Kill the Kindle?” Newsweek’s headline: “Why the iPad Hasn’t Killed the Kindle…”

It’s a good article, but what I really liked is the way that it answered an even bigger question. A few analysts had raised a darker possibility:that Amazon will kill the Kindle. What if Amazon decides it just doesn’t want to compete with the iPad, and then shifts all of its resources into marketing Kindle ebooks (to all the non-Kindle devices, like the iPad, the Blackberry, and the Droid)? But apparently Newsweek’s reporter broached that topic with Amazon’s CEO Jeff Bezos when the Kindle first began confronting the possible threat from the iPad last fall.

“I suggested to Bezos that maybe Amazon didn’t care about selling Kindle machines, that maybe the device wasn’t important. He said that wasn’t the case, but that ‘our goal with the Kindle device is separate from the Kindle bookstore.’

“Bezos insisted there is a market for ‘a purpose-built reading device,’ as he calls it. ‘It’s not a Swiss Army knife. It’s not going to do a bunch of different things. We believe reading deserves a dedicated device.'”


Of course, you can read what you want into that quote. (After all, separating the Kindle from the ebook would be the first step towards eventually abandoning the Kindle altogether.) But here’s how I understand what Amazon’s CEO is saying.

1. Amazon doesn’t need to sell Kindles in order to sell ebooks.

2. Amazon would still like to sell both Kindles and ebooks…

Amazon's Jeff Bezos on the Kindle
There was some controversy when Amazon’s Jeff Bezos announced a new book-reading Kindle application for the iPad. “Is Amazon Killing the Kindle?” asked The Motley Fool, noting that Amazon offered extra video and audio features in their Kindle applications for both the iPad and iPhone.

It’s possible to embed multimedia clips directly into the ebooks, so they can then be played back in the Kindle applications for these devices – though not, ironically, on a Kindle. The Motley Fool noted that Amazon was making an effort to support Kindle applications not only on Apple’s mobile devices, but also on Google’s Android platform and Droid phones. (And there’s also a Kindle app available for the Blackberry.) “But will that support come at the expense of the Kindle itself?” Noting that Amazon is now “putting out a better product for the non-Kindle owning crowd,” they wondered if Amazon was refocusing its energy on the sale of ebooks — rather than on their own ebook-reading device!

For an answer, let’s go to Amazon CEO, Jeff Bezos. Interviewed by Fortune magazine, he was first asked point-blank about the iPad, and, basically, whether Amazon felt doomed by Apple’s entry into the marketplace for tablet-sized reading devices. Was the threat of competition what pushed Amazon into dramatically lowering the Kindle’s price last month?

“No. The iPad… It’s really a different product category. The Kindle is for readers.”


But the interview also offers an interesting statistic — last year, 80% of all ebook sales came through Amazon’s store. (Bezos jokes that “It’s hard even for us to remember internally that we only launched Kindle a little over 30 months ago.”) So it still stands to reason that Amazon is just as interested in protecting their book-selling business as they are in their secondary business of selling Kindles. That’s the secret subtext when Bezos answers a question about whether Amazon can hang onto its share of the ebook market.


“We want people to be able to read their books anywhere they want to read them. That’s the PC, that’s the Macintosh. It’s the iPad, it’s the iPhone. It’s the Kindle. So you have this whole multitude of devices and whatever’s most convenient for you at the moment.

“We think of it as a mission. I strongly believe that missionaries make better products. They care more. For a missionary, it’s not just about the business. There has to be a business, and the business has to make sense, but that’s not why you do it. You do it because you have something meaningful that motivates you.”


It’s a fascinating interview, because you get the idea that Bezos really, really loves books. At the same time, he also admits that “I think the definition of a book is changing.” He defines that change specifically in areas where the Kindle is strong, saying that the book is now “getting more convenient. Now you can get a book in less than 60 seconds.” But in the end, he still never answers the big question of whether Amazon sees its future in the sale of Kindles — or in the sale of ebooks, to all devices.

Fortunately, there’s one more piece of data. You may have seen Amazon’s new television ad, where they emphasize that you can read your Kindle at the beach, in direct sunlight. (Which would obviously be nearly impossible with the back-lit screen of an iPad.) If Amazon were surrendering to the iPad, then they wouldn’t be wasting their money on an expensive TV ad campaign. To me, this strongly suggests that Amazon is still serious about staying the market for tablet-shaped devices.

But ironically, back in January — before the iPad had even been released — I’d already written an article asking Could Apple’s iPad Kill the Kindle? Maybe it’s ultimately just a perpetually trendy question — and an indicator that Kindle users feel overly protective of their beloved device!