While the likes of the iPhone expand our access to online, Amazon embraces our changing states of online and offline by synthesizing them in an experience-specific device, the Kindle, for wireless reading. Amazon reinforces the synthesis by using the term “electronic-paper”. With a pricetag of almost $400, the fact that they’ve had to post the following statement, says something for the market response since its November 2007 debut, and its potential:
Kindle Availability Due to heavy customer demand, Kindle is temporarily sold out. We are working hard to manufacture Kindles as quickly as possible and are prioritizing orders on a first come, first served basis. Please ORDER KINDLE NOW to reserve your place in line. We will keep you informed by email as we get more precise delivery dates. Note that Kindles cannot currently be sold or shipped to customers living outside of the U.S.
The Kindle even has its own Wikipedia post (maybe offering full access to Wikipedia offline is related? Oh, and did I mention a full version of the New Oxford American Dictionary?). The post reports that the initial offering resulted in a sellout in 5.5 hours. Sure beats standing in line for hours on the street only to end up empty-handed. While the device was announced well over a year in advance, and even though I’m on Amazon weekly, it’s never caught my attention until this week. That suggests to me, that there’s a lot more upside to this product. [Gosh and I’ve already spent my $400 buying a pair of XOs – I got as far as charging it up, but haven’t had the time to power it up. More later…]
Here’s where the total experience gets more specific to a focused scenario: If you look very carefully above main contents of the Amazon Kindle product page (bottom of the page header) you’ll see a series of links related to the Kindle Store. Select “Kindle Books” and you get a collections of book ‘products’ different than their non-electronic brethren. These SKUs will download, on purchase, to your Kindle device, in 2 minutes. Not sure if you really want that title, and thinking of going to a retail store to flip through the pages? Grab the first chapter for free. That, my friends, now differentiates the offering by the experience — an experience that spins endless new offerings for the brand.
When you specialize the experience to the product and the products to the experience, how quickly can the competition respond? [Repeat again, “The experience IS the product.”]
Amazon is a market maker. When some companies waste valuable cycles building walls against the competition, Amazon goes out embraces theirs. By expanding their model to include used and second-market books Amazon capitalized on a larger portion of the demand chain, and expanded the total market (just ask the many used book vendors who liberally leverage Amazon’s online storefront) – recognizing as Bill Gates did, that when the pie gets bigger so does their slice of it.
Amazon does this one better by creating the Kindle Edition of major newspaper subscription content. Bear in mind that these publishers have already had to grapple with the transition of their identity from newspaper to content provider. I wonder how long it will be before the section label will change to drop the “newspaper” reference? [I’d sure like to hear the debates that went on around the division of product collections and how to label them.]
And while there’s been some whining about the cost of the newspaper subscriptions being the same as the newspaper stand versions for content that is more frequently being offered for free online, Amazon is likely looking to capitalize on the long tail of economics. Don’t think that they’re not going to experiment with the elasticity of pricing for these offerings over time. In the meantime, they capture the small slice of the market that finds reason for this offering to most closely match their specific scenario needs. [I know I’d want to be doing some ethnographic work to identify a potential Kindle-factor on BART, WMATA, and MTA (amateur sightings welcomed).]
How many more dots can Amazon connect?
1. Paula Thornton on January 4, 2008 7:14 AM writes...
Comments on another channel from Peter Merholz:
Kindle is interesting because in theory they do a lot of stuff right (mostly around realizing that what they have is not a product, but a service), but in practice they do a lot of stuff wrong, particularly the industrial design of the device, which is, for such a prominently hyped product, TERRIBLE. As in, you cannot pick up the device without
accidentally moving forward or backward a "page." As in there are 72 buttons littered around the thing (including the keyboard). As in it's just kind of ugly.
We got a Kindle at launch because we're working on a similar-ish device, and mostly what we learned is what NOT to do from a form factor/product design approach. We did learn some valuable stuff from a service/delivery approach.
Peter: Thanks for sharing your own experiences and observations. The one review I'd included a link to (http://reviews.cnet.com/e-book-readers/amazon-kindle/4505-3508_7-32751890.html), had seemed to be generally positive and other complaints were about the cover.
Nice to get insights from one of 'us'.
Now my question would be, where was the breakdown in the overall business model? If Amazon can get so many other things right, who was responsible for these design decisions and where did the overall 'good design' influences across Amazon not have sway?
We tend to be more focused on the results and not the means by which the results occurred -- to influence 'fixing' them in the future. [Often the ability is there but is being oppressed or ignored.]
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