Kindle's Big Flaw

Fool analyst Rex Moore says's (Nasdaq: AMZN  ) new Kindle 3 is great in almost every way. It's easier to read than its predecessors and lighter; it has greater battery life and a tempting $139 price tag for the Wi-Fi-only unit. The one big flaw is it can't check out e-books from the library like almost every one of its competitors can (with the notable exception of Apple's (Nasdaq: AAPL  ) iPad).

The Barnes & Noble (NYSE: BKS  ) Nook, Sony's (NYSE: SNE  ) e-reader, and others can download and display e-books in the Adobe ePUB and PDF formats used by most libraries.

Not many people know you can check out library books from the comfort of your home and download them to your e-reader. They expire after a set amount of time and can't be read unless they're checked out again. (Check with your local library to see if it offers e-books, and how large its collection is.) This is quite an amazing feature; if more folks knew about this, it might really accelerate e-reader sales.

Rex doesn't expect Amazon to support the ePUB format anytime soon, for competitive reasons. Management wants to keep a proprietary, closed format to keep Kindle owners buying e-books from the Kindle store. This greatly increases switching costs, because when it's time to buy a new device, a user with dozens of e-books won't switch to a device that can't display them.

Watch the video here:

For more analysis, visit

Fool analyst Rex Moore looks great on a Kindle. He owns no companies mentioned here. Apple and are Motley Fool Stock Advisor picks. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (15)

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.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1276634, ~/Articles/ArticleHandler.aspx, 10/25/2016 1:54:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,186.53 -36.50 -0.20%
S&P 500 2,145.45 -5.88 -0.27%
NASD 5,287.59 -22.24 -0.42%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 1:39 PM
AAPL $117.87 Up +0.22 +0.18%
Apple CAPS Rating: ****
AMZN $835.60 Down -2.49 -0.30% CAPS Rating: ****
BKS $10.40 Down -0.50 -4.59%
Barnes and Noble CAPS Rating: *
SNE $31.91 Down -0.24 -0.73%
Sony CAPS Rating: ***