Scott Berry

Advice for Amazon on How to Get Serious About the Kindle

Bzzzt! Wrong answer, Michael.

Kindle's problem isn't the business model, it's the product concept, which just isn't compelling enough. Once it begins to fundamentally change the reading experience (instead of simply replacing paper), it'll catch on.

In any case, you're assuming Amazon's making its money on the ebooks. If that business is so good, then they could simply give away the Kindles.

Can you imagine how unprofitable Apple would be if it made no margin on iPods but counted on iTunes sales to make money?

Back to square one.