Why the Kindle never took over the world

I was in Best Buy this evening, and I was looking an iPad. I wasn’t planning to buy one, but they had three models of it on display, so I decided to take a few minutes to see if it was really an impressive product. None of the main features of it caused me to be all that impressed. And then I started looking at the iBook reading section of it (they happened to have Stephen King’s Under the Dome installed on it, which is ironic because I was planning on buying that on an electronic reader the second I got one (as I really don’t like lugging that HUGE book around, even though I currently own it). Wasn’t all that impressed. I didn’t see anything about it that the Kindle didn’t already do.

Which got me thinking. I don’t own a Kindle right now, but I do have a Kindle reader app on my iPhone. So, I can actually read Kindle books on my iPhone.

Which then got me thinking even further. I started to wonder why Amazon’s Kindle hasn’t made the impact that it probably should.

Let me explain. The Kindle is an excellent device for what it does. From the reviews I’ve read about it (including the testimonies), it is a great reader. Unlike the iPad, it doesn’t suffer from the sun glare if you’re using it outside, and it’s very much like an actual book in that you can read it for hours and not get uncomfortable like you will if you’re reading a computer screen (something practically every other e-reader suffers from). With that in mind, you’d think that the Kindle would be selling like hot cakes. So, why isn’t it?

Well, the answer to that question is found in Amazon’s strategy itself. And it’s one of the most bizarre strategies I’ve ever seen for a company that is trying so hard to set the standard for e-readers.

You see, Amazon wants to corner the market on e-readers and e-books, much like Apple has tried to corner the market on music with its iTunes platform. And Apple would have succeeded if it had done it earlier, but Apple put out iTunes AFTER there was already an MP3 market for music established. People were already burning CDs to MP3s and putting that music on MP3 players. Apple came along and then tried to corner the market on something that was already out of control. And surprisingly, they actually got their foot in the door, but it’s a door that’s been wide open for a very long time.

But books are a different story. There has literally been no e-book market because each company that puts out a reader is a company that has no ability to corner the market because controlling the reader doesn’t also mean controlling the content. And that’s where they all fail. But Amazon had a chance to do it because it is probably the one company out there that has a huge market that serves the reading community. If they would have put out an e-reader and made it easily available, they could have owned the whole e-reader market. And they almost did when they released the Kindle, but they then did one of the stupidest things they could have ever done. They made it so you had to buy the Kindle directly from them on their site.

And that practically killed their chances for world domination. I think of myself as a good example to explain why this was such a failure. I buy books from Amazon all of the time, but I refuse to buy a Kindle, mainly because I’ve never seen one in person. I’ve never held one in my hands. In other words, Amazon wants me to buy their equipment unseen and untested, specifically on trust alone. And I don’t trust them because they want me to spend $259 or $450-something for an e-reader that I’ve never seen in person before. And they’re asking a lot of people to trust them and buy their product without ever having a chance to test it. Unfortunately, that’s a business plan doomed to failure. Sure, they’ll sell a few, but they’re not going to sell the number they need to in order to gain the market share they want and need.

So, Amazon is mainly going to have to focus on trying to get people to buy the books they sell online through their site as Kindle books, but they then made it possible for anyone to have their own Kindle-like product, so they made it even less possible that people are going to buy a physical copy of a Kindle. Which then means someone who has a Kindle reader, but not a Kindle, probably has a device that can then probably handle other programs (or apps) as well, which means any company that puts out a book in a cheap format can easily gain their business.

Apple has now jumped into this market and is trying to create its own iBookstore which it hopes to control like the iTunes marketplace. Not going to happen because there are already so many other more trusted places to get book content that Apple is never going to be the “go to” place for that. It’s just going to further saturate the market with more places to find e-reader books, and thus, it will make it that much harder for e-books to take off because there will not be any one format. People will become so frustrated with trying to tap into this market that they’ll just consider it one of those unrealized areas of content and continue to buy books in hard copy.

But Amazon could have won the war right from the start if they would have done one thing, and that’s license other companies to sell their Kindles. Imagine the business they would have gained if they would have had Best Buy selling Kindles. If they would have dropped the price to about $199 and then put them in every Best Buy, they would practically own the e-reader business across the country, and who knows….the world. But they didn’t do that. There were no apps being made for the Kindle, so the only way to read books on it would have been to buy them from Amazon. It was a win-win situation, but they didn’t think it all of the way through.

Instead, we have more and more readers coming out and no way to figure out how to get the books onto those readers, so those readers are going to fail overall, and manufacturers will figure that it was the customers not wanting to buy books for devices, when in fact it was a failure of the devices to capture an audience that was willing to then buy content.

That’s why the Kindle never took over the world, even though it probably could have.