You lose money on every Kindle you sell, you pay carriers for every bit you transfer over your Whispernet wireless delivery system, and at $9.99 a pop you even lose money on many of your e-books. And you’re worried about competing with the iPad… why?
Quit wasting your time and money acquiring companies and technologies in hopes of outdoing Apple at what Apple does best, and instead put all your effort into creating a better Kindle app and e-book buying experience for the iPad and other forthcoming tablet devices than Apple has created with its own iBook platform. Think of the iPad as an opportunity to get your e-books into millions more hands, without having to subsidize the hardware and network costs. Yeah, sure, you might only ultimately capture 20 to 30 percent of the e-book market on Apple’s touch platform, but that would still represent a helluva lot of virtual Kindles… and just like in the smartphone market, even a wildly successful iPad won’t be the only major player in the field.
Oh, there’s still plenty of room for your physical Kindle, a special purpose e-book reader with a comfortable e-ink display and incredibly long battery life… and there’s plenty of opportunity to make the Kindle better and cheaper. But multi-touch, app stores, energy-hungry color screens… you’re never going to create a better multipurpose device at a lower cost than Apple. So please, keep your focus.
Kindle is a great product that kick-started the e-book industry, and you deserve to be proud of that. But don’t let pride get in the way of profiting off your initial success.
Best of luck,