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Kindle Cracks Could Cost Amazon $5 Million

By Chad Berndtson, CRN July 15, 2009
Is Amazon about to crack up over allegations that its Kindle e-reader is a little more fragile than previously thought? Probably not, but Amazon could be left $5 million lighter thanks to a lawsuit filed Tuesday that alleges an optional protective cover for the Kindle causes cracks in the Kindle's screen.

According to court filings, Matthew Geise, a Seattle real estate executive, says he bought a Kindle and the Kindle's screen froze up after the e-reader's frame showed signs of cracking. The cracks on the Kindle were said to have appeared where Amazon's optional leather Kindle cover, which costs $30, attaches to the Kindle itself.

The lawsuit filing alleges a number of similar complaints on Amazon Kindle message boards -- with other Kindle users saying the covers cracked their e-readers as well. The suit also states that Geise called Amazon about the Kindle's warranty and was told by Amazon representatives that Amazon would not repair the Kindle's cracks because the cover was opened improperly. It further states that another Amazon supervisor told Geise's wife that cracked Kindles were a "common problem," but that the Geises would be responsible for hundreds of dollars in repairs to the Kindle frame.

"I think it's a much bigger problem, given the number of posts going up every day," said Geise's lawyer, Beth Terrell, to The Wall Street Journal. "These are just the tip of the iceberg."

Amazon did not respond immediately to a Channelweb.com request for comment.

The past few months have brought a patent lawsuit or two into Amazon's Kindle orbit, but thus far, Amazon and its Kindle have been left relatively unscathed by the types of consumer electronics lawsuits seen with many hot new technologies.

In recent weeks, Amazon's been seemingly more worried about sustaining the Kindle's sales -- dropping the price of the six-month-old Kindle 2 by $60 -- in the wake of a flood of new Kindle competitors coming out to challenge its e-reading dominance.


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