Amazon Gets the Big Picture

As expected, Amazon.com (Nasdaq: AMZN  ) introduced its new Kindle DX this morning. It's larger than the existing e-book reader, with a screen 2.5 times bigger than the current model offers, yet it's still only a third of an inch thick.

The screen isn't the only thing that's bigger. The price tag is growing to $489. That's $130 more than the regular device.

Even though consumers generally expect gadget prices to shrink over time, there are a few reasons to bet on the success of the newest device from the world's largest online retailer.

  • Kindle DX will be tested at five colleges, where physical textbooks are very expensive.
  • A few newspaper companies, including New York Times (NYSE: NYT  ) and Washington Post (NYSE: WPO  ) , will offer discounted DX readers in exchange for long-term digital subscriptions from those who live outside the markets where daily physical delivery is possible.
  • Among the DX's new features are the ability to read documents in Adobe's (Nasdaq: ADBE  ) PDF format and a beefier storage capacity. Taking a page out of Apple's (Nasdaq: AAPL  ) iPhone, the device's display will also auto-rotate -- it will switch from portrait to landscape mode if it senses that the Kindle has been flipped to its side. 

Once again, Amazon is raising the bar that the likes of Sony (NYSE: SNE  ) and Barnes & Noble (NYSE: BKS  ) will be pressed to compete against. Sony has been in the market longer and Barnes & Noble has the killer bookstore brand, but neither of those companies will get a gush-fest on Oprah Winfrey's show.

So keep rocking, Amazon, even if the critics initially scoff at the hefty price tag. (Fellow Fool Tim Beyers is one of those critics. Check out what he had to say about the Kindle DX.)

Stories with happy endings:

Apple and Amazon.com are Motley Fool Stock Advisor selections. Try any of our Foolish newsletter services free for 30 days. 

Longtime Fool contributor Rick Munarriz has been a Kindle owner since last May. He is also part of the Motley Fool Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. He owns no shares in any of the companies in this story. The Fool has a disclosure policy.


Read/Post Comments (4) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 06, 2009, at 7:37 PM, rockt wrote:

    What college student doesn't have a laptop?

  • Report this Comment On May 06, 2009, at 9:12 PM, mberan wrote:

    Laptops=weight. Kindle's lighter and easier to read than on a laptop. Break through will come further when they start pushing to high school kids and high school text books. All the "issues" of overweight backpacks because of books will move the Kindle for AMZN

  • Report this Comment On May 12, 2009, at 4:06 AM, BrianneD wrote:

    Its always gonna be a talk of the town for the Amazon’s The Kindle DX is coming out and this new edition of the Kindle means that things are going to get worse. Amazon released the Kindle DX just recently, and it's a vast improvement over the previous edition. It's nearly twice the size of the original Kindle, and it has twice the storage space. It will take quite the cash advance, as it retails for about $500. It will download entire books for pennies per page, New York Times Bestsellers could go for as little as $10 or less. The newspaper industry is in dire need of debt relief, which the <a rev="vote for" title="What Effect Will Kindle DX Have on Newspaper Industry?" href="http://personalmoneystore.com/moneyblog/2009/05/06/effect-ki... DX</a> is probably not helping – but it sure is cool.

  • Report this Comment On May 12, 2009, at 4:06 AM, BrianneD wrote:

    Its always gonna be a talk of the town for the Amazon’s The Kindle DX is coming out and this new edition of the Kindle means that things are going to get worse. Amazon released the Kindle DX just recently, and it's a vast improvement over the previous edition. It's nearly twice the size of the original Kindle, and it has twice the storage space. It will take quite the cash advance, as it retails for about $500. It will download entire books for pennies per page, New York Times Bestsellers could go for as little as $10 or less. The newspaper industry is in dire need of debt relief, which the is probably not helping – but it sure is cool. http://personalmoneystore.com/moneyblog/2009/05/06/effect-ki...

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