Will Kindle DX Be Everything Amazon Hopes It Will?

With a 9.7-inch display, the Kindle DX is specifically targeting the textbook and newspaper markets, two areas where the original models have fallen short. Along with the larger screen, the Kindle DX will contain 3.3 GB of usable RAM, which allows it to hold up to 3,500 books, an improvement over the current Kindle, which holds approximately 1,500 books. It will also have an accelerometer, almost made a necessity by the iPhone, which enables text to be read in a wide-screen mode.

Bezos mentioned that 35 percent of the sales for books with a Kindle edition are sold in that format. This is a surprising statistic that shows just how much of a force the device is becoming in the market.

Having agreements in place with numerous newspapers, there is also a plan to have The New York Times, The Boston Globe, and The Washington Post offer the device at a subsidized discount in exchange for a long-term subscription, starting in areas where home delivery of those papers is not available. This, along with new native support for PDF files, will possibly make the $489 Kindle DX appealing to the business user.

More questionable though, is Amazon's intent to move the e-reader into the college sector. Having agreements with the three leading textbook publishers that account for 60 percent of the market, Bezos announced that five universities will test-drive the Kindle DX this fall.

There was no mention of who would be paying for the test units though, which brings us to what could be the deciding factor of Kindle's success at colleges. While any student would love to have just one thin, lightweight device to carry around, vs. the thick, heavy textbooks that are now a part of collegiate life, would they, or their parents, be willing to shell out that much money for the luxury? Even with discounts on the digital textbooks over the paper version, is the savings substantial enough?

Furthermore, students have always been able to sell their textbooks at the end of the semester, either to incoming students, or back to the university bookstore. Typically, there was also the option of purchasing a used textbook for a significantly lower price, possibly with important text already highlighted. Will Amazon and the publishers allow similar free-trade among the digital bookstore? Very unlikely.

We have no doubt the Kindle DX will be a success. It takes an already groundbreaking product and builds on its features. Presuming the price will eventually come down, as is usually the case with technology, the Kindle DX will probably find its place. The question is, will it be the place that Amazon is aiming for?