Kindle 2 Update
And now we have the Kindle 2, the next generation wireless reading device. I am really pleased with so far. At just over 1/3 inch and 10.2 ounces, the new device is very sleek — as thin as a typical magazine and lighter than a paperback. It is not radically different than the original Kindle but definitely a refinement of the user interface. The faster page turns are noticeable and the sixteen shades of gray instead of the current four makes the already sharp Kindle page sharper.
While the cell phone makers need three years to convert to the new micro USB standards-based charger, Amazon has already included it with Kindle 2. I think they have a winner on their hands. An analyst I heard today said that Amazon was cannibalizing it’s book business. I think he missed the point. When Amazon sells a "real" book for $20 their cost will include the printing, binding, inclusion of a multi-color glossy dust jacket, picking the book from the warehouse shelf, packing it in a box, and loading it on a truck. When Amazon sells a "Kindlized" book for $10 their cost includes a server noticing the click on amazon.com or on a Kindle and the transmission of a few hundred thousand or so bytes of data over the air to the Kindle plus an infinitesimal amount of storage to keep a copy on their server. The only question is how many times greater the profit margin is in favor of the non-book book.