Micro-Kindlenomics: My cost benefit analysis

Amazon’s Kindle 2 cures all of the ills that afflicted the e-tail giant’s first e-book. It has better navigation, a handy definition feature, a five-way controller and a text-to-speech feature that has raised a ruckus. But the decision to upgrade to the Kindle 2 comes down to the microeconomics: Are the features good enough to entice users of the first Kindle to upgrade to the new one at the same price–or more if you include a new cover?

That decision is a bit of a tough one for me. I have the first Kindle and acknowledge that it is clunky in spots. I turn the pages too easy, the resolution isn’t as good as Kindle 2 and it has one button that navigates pages. The Kindle 2 is sleek–even the charger is well designed. Next to the Kindle 2, the first Kindle is kind of homely. 

Kindlenomics: Keep publishers and authors happy (cave once in a while)

Review: Amazon Kindle 2 5-way controller more significant than form factor improvement

The problem is that the Kindle 2 is $359. A new Kindle cover, which is a vast improvement over the first version, is another $30. The big question: Is the latest Kindle sleek enough to convince existing owners to toss what they have today and shell out nearly $390 for a new one with a cover?

If you don’t have a Kindle yet, the latest version makes it a no-brainer to get off the fence. I have no problems recommending the Kindle 2 to anyone buying an e-book. However, you should read Matthew Miller’s review and check out the Sony e-book comparison gallery. 

For me, the Kindle 2’s price is a barrier. If there were a discount for current Kindle owners–or a rebate for recycling the first version–perhaps the price would be more palatable. A price of $199 would be a no-brainer for me. I’d upgrade to the Kindle 2 in a heartbeat at that price point. A price of $250 may also do the trick including the new cover that secures the Kindle 2 nicely. Anything more than $250 is seriously pushing it. 

Based on my Kindle 2 review unit I created the following evaluation, which weighs the new features and what I’m willing to pay for them (click to enlarge). 

 

Add it all up and I’ll stick with my homely Kindle for now. However, should my old Kindle fall apart, get lost or fall from a building I won’t weep too much with the Kindle 2 on the market.

Posted by red_65 at 3/2/2009 1:54 PM
Categories: General
Tags: General Kindle 2...... Amazon Kindle 2 Amazon E-books Analysis Personal Technology Amazon Kindle E-commerce Personal Technology Tags: Benefit
 

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