Kindle 2 Looks Good, But Still A Niche Gadget

Mon, Feb 9th, 2009

Amazon's (AMZN) new Kindle 2 e-book reader, unveiled today in New York, is more attractive than its predecessor: It's thinner, has a sleek metal back, and nicer buttons. And it has some improved features: More storage capacity, better page-turning functions, and the screen displays more shades of gray.

But Amazon did not do much today to make the Kindle significantly more attractive to mainstream buyers: It's still $360 and it's still only really good for one thing -- reading books.

This also means it's still little threat to Apple's (AAPL) iPhone and iPod touch, or future Apple Internet tablets; or so-called netbooks -- inexpensive, lightweight laptops from PC makers like Dell (DELL) and Acer.

What could have made the Kindle more attractive?

A lower price tag is the most obvious step. If Amazon wants to get the whole country reading books on a plastic gadget, it'll need to be less than $360.

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