Should Amazon's Kindle change?

Posted by Alisa Zykova on December 29, 2009 at 8:19 AM

Amazon received a pleasant surprise this Christmas; "for the first time ever" consumers bought more Kindle editions of books than physical books, MSNBC reported yesterday. However, PC World's Jeff Bertolucci suggested that as the e-reader landscape is expected to change next year as other e-readers are launched, such as the expected unveiling of Apple's tablet computer, there are steps Amazon can take to prevent the Kindle device from becoming outdated.

One possible transformation is the addition of a colour screen, which would largely benefit magazines and newspapers, Bertolucci wrote. E-Ink displays are alright for books, but Kindle may have to swap it "to appease its news publishing partners." Another change could be dropping the physical keyboard since a touchscreen may be enough for "limited text-entry tasks" and the extra space could be used to enlarge the display.

Bertolucci also mentioned a potentially less restrictive DRM (Digital Rights Management) policy that could attract more consumers, which may be skeptical towards acquiring digital books linked to a constrained number of e-readers. Kindle DX could be redesigned to become a tablet computer with attributes like a colour touchscreen as well as advanced browsing and media-playback features.

However, because the Kindle is so popular, it's possible that Amazon shouldn't change a thing, he adds.

"We believe Kindle owners visit the site much more frequently than the average Amazon customer," a note from Cowen & Co analysts stated Monday, "and the growth of Kindle ownership should boost the company's share of the consumer wallet."