Analysts see profits from the new version of Amazon's e-book reader, but they stop short of calling it a major disruptor like Apple's music player.The unveiling of a hotly anticipated new product. An exuberant chief executive thumbing through slides. A surprise appearance by an A-list guest.
Amazon's (AMZN) Feb. 9 introduction of the Kindle 2 had all the makings of a product launch by consumer electronics wunderkind Apple (AAPL). "That was parallel to the performances at iPod launches," says Ross Rubin, consumer technology analyst with NPD Group.
That's where the comparisons with Apple should end. As much as some might try to draw parallels between Amazon's approach to books and Apple's take on music, analysts are clear that the latest generation of Amazon's sleek, white little electronic book reader is no iPod for the book world.
With this update of the Kindle, Amazon doesn't appear to be poised to shake up the publishing industry the way Apple upended digital music. "I think they ultimately believe that publishing will go digital and they want to be a player in the market when it does," says Gartner (IT) analyst Van Baker. At the same time, the company is showing itself reluctant to push too aggressively into the category—most noticeably, by pricing the Kindle 2 at $359, the same price as its predecessor. "They can sustain this price point for the foreseeable future. It's just not going to have explosive growth," Baker predicts.
Product Link : Amazon Kindle 2
Source : Businessweek.com
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