Kindle WiFi vs Sony Reader WiFi (an early look)

Let’s look at Kindle WiFi vs Sony Reader WiFi. Sony Reader WiFi is now available for preorder and comes in at a very competitive price. Sony finally decided to try to win the eReader Wars.

The Kindle WiFi version without ads is $139. The Sony Reader WiFi is $149.99. For this comparison we’ll compare the plain vanilla WiFi eReaders – Kindle WiFi vs Sony Reader WiFi. No 3G. No Ads. Just Reading on eInk.

Please Note: Sony Reader WiFi isn’t out yet. This is an early look and based on data Sony has made available.

Sony Reader WiFi vs Kindle WiFi – Sony Reader WiFi’s 5 Big Strengths

Sony Reader WiFi will have some big advantages over Kindle WiFi -

  1. ePub Support. That means you can buy books from pretty much any store except Amazon. 
  2. Touch including pinch to zoom. Take notes with a stylus or with your finger. Touch does make things faster and being able to use a stylus to jot down notes is a good feature. 
  3. Library support including wireless library downloads. Amazon has promised library book support in 2011 - Until that happens (December 27th?) this is a major advantage for Sony Reader WiFi. Not sure whether wireless library downloads is a killer feature or just a very useful one.
  4. Very compact and extremely light. Sony Reader WiFi will be 6 and 7/8 inches tall, 4 and 3/8 inches wide, and 3/8 inches thick. It will weigh just 5.9 ounces. The combination of the compact size and the light weight is very compelling.
  5. Adjustable Contrast and Brightness. If Sony really has a sidelight, or some other solution for reading at night, then it gains a big advantage.

Note: Some of these details are from this Sony Reader WiFi preview post at This is My Next (Ridiculous Name for a Tech Blog). Sony Reader WiFi comes with an eInk Pearl V220 screen. To the best of my knowledge this is identical to eInk Pearl.

Sony’s new eReader has some additional advantages over Kindle WiFi -

  1. A better looking device (at least in my opinion, despite my love for my Kindles) and a choice of three colors.
  2. MicroSD card slot to expand storage capacity.
  3. There are 12 included dictionaries. Kindle has dictionaries and language apps available – but they aren’t free.
  4. 7 different font choices – Original (whatever that is), Amasis, Frutiger Neue, Palatino nova, Really No 2 (really?), Univers Next, Verdana. Kindle WiFi offers just three and they are all variants of Caecilia (triple the chances of breaking your heart).
  5. There’s a decent range of in-built features – integration with Google Books, a Browser, a Handwriting section, and Text Memos.
  6. It supports both MP3 and AAC formats for music. Kindle supports only MP3.

It’s remarkable that Sony has distilled its eReader line to a single model and come in at $150. Low Price. Easy Choice. What has gotten into Sony? Next thing you know they’ll start offering wireless library book downloads.

Kindle’s 5 Big Strengths

The Kindle WiFi is the incumbent champion and has several big advantages -

  1. The Kindle Store. There are just a lot of dimensions to this – the biggest range of new books, the lowest prices, the largest number of free offers on new books, the easiest buying experience.
  2. Kindle Whispernet Infrastructure and Kindle Reading Apps. Perhaps Amazon’s biggest advantage is its ability to create an entire ecosystem around the Kindle. The Kindle WiFi doesn’t come with free 3G so you miss out on free Internet around the world. However, you still get the numerous reading apps and the good support infrastructure.
  3. Lower Lifetime Cost of Ownership. Combine factors like lower Kindle book prices, a larger number of new free books on offer, and the great resale price amd the Kindle wins the battle for lowest cost of lifetime ownership. There’s a section below that goes into this in more detail.
  4. Text to Speech. If you like having books read to you by R2D2 then Kindle wins hands down.
  5. Ease of Use. Sony’s new Reader might change this – However, Amazon has consistently delivered the easiest-to-use eReaders. 

Kindle WiFi also has other advantages over Sony Reader WiFi -

  1. Excellent Customer Service.
  2. Kindle Apps that cover everything from time wasting to time saving.
  3. Larger in-built memory. If all you’re going to use the Kindle WiFi for is reading, then the 3.3 GB of available in-built memory dwarfs the 1.3 GB of available in-built memory on the Sony Reader WiFi.
  4. Possibly longer battery life. All the measuring sticks are so confusing (half an hour of reading per day while standing on your head) that this might not be an advantage.
  5. Possibly a better web browser.
  6. Kindle Book Lending – Doesn’t seem like Sony will have this.
  7. Kindle and Kindle Books are available in more countries.

Kindle is still a better choice for a lot of people. However, Sony has closed the gap and might even pull ahead a bit. It’s strange how Amazon is sitting back and letting first Nook Touch, then Kobo Touch, and now Sony Reader WiFi become very competitive.

Sony Reader WiFi vs Kindle WiFi – Price, Value for Money, and Lifetime Cost of Ownership

One very interesting aspect is how the two eReaders stack up in value for money and total cost of ownership.

Kindle WiFi is $10 cheaper than Sony Reader WiFi. That advantage gets flipped on its head when you consider that Sony Reader WiFi offers a touchscreen, arguably better construction, and definitely better looks. It might even offer some sort of side-lighting.

Sony Reader WiFi is better value for money for the amount of eReader you get in your hands. Note: We’re not considering the $114 ad-supported version of the Kindle WiFi.

From that point on Amazon’s Store and Infrastructure start becoming major factors. Things gets especially tricky when we try to compare Lifetime Cost of Ownership.

For the moment we have wireless library downloads on Sony Reader WiFi and a million+ free public domain books from Google. Amazon offers more free offers on new books, better prices on books in general, and a million+ downloads from sites like Internet Archive. That makes it a tie.

By the end of the year, when Amazon will add free library book support, Kindle will become the better eReader in terms of total cost of ownership. New books are cheaper in the Kindle Store and there are more free offers on new books. Add in the excellent resale value of the Kindle WiFi and by end of 2011 Kindle will be the clear winner when it comes to total cost of ownership.

Sony Reader WiFi vs Kindle WiFi – Waiting for the Actual Device to Deliver a Verdict

Sony is offering lots of interesting things – touch with some semblance of multi-touch, possibly lighting of some sort, changeable screen contrast, a low price (finally), an ultra-compact eReader.

Once it’s out, and the reviews start coming in, we’ll get a good idea of which is the better eReader. There’s also the wildcard of a possible Kindle 4 release or a drop in the price of the Kindle WiFi to $99.

Sony Reader WiFi promises the be the eReader that re-establishes Sony Reader as a major player in the eReader Wars. If Sony can drop the price to $125 it would be enough to carve out a decent portion of Holiday 2011 sales. Wonder if Sony realizes that it absolutely must undercut Kindle on price.

Have we reached the point of effective equality between all eReaders?

AKA

Is ‘Kindle vs Nook – Which Should I Get?’ now better written as ‘Kindle or Nook – It Doesn’t Matter’.

Seriously, let’s take a look at whether there’s any difference at all between getting a Kindle or a Nook 2. In particular, would you buy one and later regret it? If you wouldn’t regret either purchase – then it effectively implies that the two eReaders are now pretty much equal.

In the past Kindle vs Nook was not an easy choice

In Nov 2009, Kindle vs Nook was a tough decision

When Nook 1 was first announced, it had the following main advantages over the incumbent Kindle 2 - PDF support, ebook lending (even if it was/is just a token feature), library book support, replaceable battery, LCD touch-screen at the bottom, millions of free books from Google (although you could convert these for Kindle), ePub support, Chess and Sudoku, slightly better screen contrast, memory card slot, both WiFi and 3G.

Kindle 2 had significant advantages of its own – lower book prices, text to speech, free 3G Internet, faster speed, ease of use, better battery life (significantly better), second generation device (most of the bugs and issues had been worked out).

There were significant pros and cons to choosing Kindle over Nook (or vice versa).

In July 2010, Kindle 3 vs Nook tilted towards Kindle - but there were still consequences

In early 2010 the Agency Model eroded one of the Kindle’s biggest advantages. This made the Kindle vs Nook decision even tougher. But then Kindle 3 tilted things in favor of the Kindle.

When Kindle 3 was first announced it had the following main advantages over the Nook 1 – eInk Pearl screen, text to speech, free 3G internet browsing, slightly better PDF support, better browser, ease of use, light weight, compactness, battery life of a month, social features, being the third version of the Kindle (most issues were worked out). 

Because it was a third generation eReader, Kindle 3 easily outpaced Nook 1. However, you made significant sacrifices – no pretend-lending, no support for library books, no memory card, no replaceable battery, no ePub support, no color touchscreen at the bottom. 

In 2010, it was quite possible to pick one out of Kindle or Nook and later regret it.

In 2011, Nook 2 has made Kindle vs Nook a non-question

The features are so similar that, in combination with the Agency Model, it’s almost impossible to go wrong. All the biggest things – library book lending, pretend-lending (not a big feature but perceived as such, especially if you don’t have it), book prices, eInk Pearl screen, ease of use, speed, compactness, long battery life, light weight, availability of free books - are almost perfectly balanced.

Are you really going to regret it if you get a Kindle?

Let’s say you get a Kindle 3. The things you might possibly regret are now gone.

  1. Library Book Support – Arriving this year. 
  2. Pretend-Lending – Available. 
  3. WiFi support – Kindle 3 has it. 
  4. Replaceable battery - Nook 3 doesn’t have one. 
  5. Color touch-screen – Nook 3 doesn’t have it. It does have a touch screen, but seeing book covers in color is gone.

It’s hard to get upset about not having ePub support when the biggest reason for needing ePub support (library book support) is gone. Additionally, the Agency Model means that Amazon will have the same price as every other store for most books.

Are you really going to regret it if you get a Nook 2?

Nook 2 has closed the gap so well it’s in danger of becoming a clone.

  1. eInk Pearl screen – check.
  2. Great battery life – check.
  3. No color screen – check.
  4. Focus on ease of use – check.
  5. Light and Compact – check.
  6. Social features – check.
  7. Black Casing + WiFi – check.
  8. Faster processor so sluggishness is gone – check.

Kindle 3 and Nook 2 both have the same screen and a focus on reading. They both have the same books at the same prices. Kindle vs Nook is no longer a difficult decision. It isn’t even much of a decision any more.

Whether you get Kindle and get x months of battery life at x’ hours per day, or you get the Nook 2 and get y months of battery life at y’ hours per day – It’s still incredible battery life and it’s not really different.

That’s how ridiculous the contest has become – the companies are competing on something (battery life) that isn’t really a differentiator any more. Amazon can’t claim eInk Pearl, and B&N can’t claim support for library books, so it devolves into an argument over which device’s battery life is longer when measured in peculiar ways.

When it comes to reading on eReaders, we might be running out of genuine differentiators

Few of the participants in the eBook ecosystem have any interest in favoring Amazon over B&N or B&N over Amazon.

  1. eInk/PVI, the eInk Pearl screen maker, will sell both the same technology.
  2. Foxconn will make both Kindles and Nooks.
  3. Publishers will sell both the same books, and at the same prices, and with the Agency Model restrictions – effectively killing the biggest possible differentiator.
  4. Stores like WalMart and BestBuy will sell both.
  5. Google will offer up free books to both, as will Internet Archive and Gutenberg and Many Books. Not to mention – all public domain books are free for anyone to use, and hence can’t really be a differentiator.
  6. Indie Authors and Authors will, for the most part, sell to both. Example: Amanda Hocking declining a deal from Amazon because Amazon wanted a Kindle exclusive.
  7. Even some Kindle owners are buying Nook Colors (out of curiosity) and Nook 2s (because they want an ePub reader).

There is very, very little opportunity to differentiate. Amazon is left with its website and its Cloud. B&N is left with its stores and the fact that everyone is scared of Amazon. Those just don’t seem enough to get a clear lead.

Kindle vs Nook 2011

With Nook 2, B&N has left the Kindle behind and temporarily won the Kindle vs Nook contest.

Please Note: This Kindle vs Nook review will be updated when the Nook 2 actually ships and I get my hands on it.

There are basically two Kindle vs Nook comparisons now -

  1. Kindle 3 vs Nook 1 in the Dedicated eReader with 3G category. Kindle 3 wins this easily. Please check my Kindle vs Nook Review for a Kindle 3 vs Nook 1 comparison.
  2. Kindle WiFi vs Nook 2 in the $139 Dedicated eReader category. Nook 2 easily beats Kindle WiFi here. This post looks at Kindle WiFi vs Nook 2.

Kindle vs Nook in 2011 – Areas Nook Clearly Wins

  1. Value for Money – For the same $139 price, you get nearly all the features of the Kindle WiFi plus a touch screen.
  2. Touchscreen – While Sony made a hash of how it used touchscreen in an eReader, B&N has focused on making things simple. It seems to have worked.
  3. Compactness – Nook 2 is just 6.5″ by 5″ by 0.47″ which makes it small enough to fit in your pocket. Kindle WiFi is 7.5″ x 4.8″ x 0.335″ which makes it less compact (it’ll fit a jacket pocket but not a pant pocket).
  4. Better Battery Life – Battery life for Nook 2 is supposedly two months with WiFi off. Kindle WiFi has 1 month battery life with WiFi off. B&N uses the criteria of half an hour of reading per day - not sure what criteria Amazon uses. Note: With wireless on, both have the same battery life of 3 weeks.
  5. Memory Expansion – Memory Card Slot that takes up to 32 GB memory cards.
  6. Smoothness & Less Flashing - Screen flashing happens only every 5th or 6th page when turning pages. If the screen flash bothers you then this is a definite plus. B&N also claims smoother page turns. Note: This might be all software and Amazon might be able to match this quite quickly.
  7. Faster Page Turns – Waiting to see how it is in person. It sounds very promising.
  8. Library Book Support - Amazon has promised to add this later in 2011. For now, B&N’s Nook 2 has a clear advantage as it supports library books.
  9. Personalized Screensavers – A nice personalization touch.

Kindle vs Nook – Areas Nook is slightly ahead

  1. Weight – Nook 2 at 7.48 ounces is slightly lighter than Kindle WiFi at 8.5 ounces.
  2. In-Store Extras – Free WiFi and some special offers when you go to B&N Stores. You can also browse through books for free (for up to an hour per day per book). B&N staff to help answer questions.
  3. ePub support – Lets you read books bought at other stores that use ePub with Adobe DRM.
  4. Possibly Better PDF Support – The scrolling in PDFs is really quite good. Waiting to try it out in person and see what else is supported. This might end up being a big Nook 2 advantage.
  5. Social Aspect – Nook Friends in-built social network with ‘Liking’, recommendations, contact lists, and more. Kindle WiFi is limited to Facebook and Twitter updates.
  6. FastPage – Apparently this feature lets you hold down the page turn button and quickly get to anywhere in the book. Will have to test this – it sounds really good.
  7. Simplicity – The touchscreen makes things like highlighting easier on Nook 2. Never thought Nook would become simpler to use than Kindle.
  8. Cover View – Organize your books into shelves that show book covers, browse using cover view.

Kindle vs Nook – Areas Kindle WiFi & Nook 2 are in a tie

  1. Screen – eInk Pearl screen optimized for reading. 50% better screen contrast than previous generation eReaders (Kindle 2, Nook 1). Black/Graphite casing to further enrich contrast.
  2. WiFi – Both ship with WiFi connectivity. Both have free WiFi at AT&T hotspots.
  3. Focus on Reading – Both are dedicated reading devices (Thankfully).
  4. Font options – Kindle has 8 font sizes and 3 font types while Nook 2 has 7 font sizes and 6 font styles.
  5. Retail availability – Both are available at numerous retail chains including Best Buy, Target, and Wal-Mart.
  6. Price – Both are $139.
  7. Reading Apps – Reading Apps are available for both Kindle and Nook owners for a variety of platforms including iPad, iPhone, PC, and Mac.
  8. Accessories – Kindle has a lot more accessory choices but Nook has some pretty interesting options like Nook Totes.
  9. Easy to Hold – B&N touts its contoured back but the Kindle WiFi’s back is easy to hold too.

Kindle vs Nook – Areas Kindle is slightly ahead

  1. Software Dependability – Both Nook 1 and Nook Color have suffered massively from glitches. Until Nook 2 is in readers’ hands and working well (without lots of bugs) the Kindle is a safer bet.
  2. AdKindle Option - You can get AdKindle for $25 less. It’s a version of Kindle WiFi with sponsored screensavers and an ad on the Home Page. 
  3. Landscape Mode – Kindle WiFi offers reading in landscape mode which is very useful for web browsing and for PDFs.
  4. Physical Keyboard – While it increases the size, it also makes it easier to type notes.
  5. Looks – While Kindle WiFi looks sharp and svelte the Nook 2 looks a little boxy and chunky.
  6. WhisperNet – Kindle comes with lots of Cloud based services like seeing popular highlights for a book you’re reading and accessing your notes and highlights online. B&N has begun to catch up and has promised a MyNook portal.
  7. Amazon.com Site – Easier to navigate and use than B&N’s website.

Kindle vs Nook – Areas Kindle is clearly better

  1. Kindle has Text to Speech. While some Publishers disable this feature it’s still present in 40% to 60% of books. Plus you get text to speech for all documents and public domain books you add yourself. 
  2. Web Browser. A big feature especially as the browser is relatively decent.
  3. Book Range and Prices. Kindle Store has more books available. For books other than Agency Model books (which are the same price everywhere) Kindle Store tends to have slightly better prices. Note: B&N counts Google’s free public domain books and claims it has more books – That’s patently false as public domain books are available for Kindle too (Google Books PDFs work, as do Internet Archive’s 1.8 million free texts).
  4. Kindle App Store – You now have 70+ Kindle Apps for Kindle WiFi. Nook 2 does not have apps (they are only available on Nook Color).
  5. Kindle WiFi comes with 4 GB of memory of which approximately 3 GB is available to the Kindle owner. Nook 2 only has 2 GB memory of which only 1 GB is available to the Nook owner.
  6. Customer Service – Amazon really puts effort into providing great customer service.

Overall Conclusion – Kindle vs Nook goes to …

Nook 2.

  1. Nook 2 wins several key areas – value for money, touch screen, compactness, battery life, memory expansion, less flashing, faster page turning, personalized screensavers, and library book support.
  2. Nook also edges Kindle slightly in the following areas – weight, in-store extras, ePub support, possibly better PDF support, simplicity, Nook Friends social network, and Cover View.
  3. Kindle edges Nook 2 slightly in some areas – software dependability (might turn into a big advantage), cheaper AdKindle option, physical keyboard, landscape mode, looks, WhisperNet, and website.
  4. Kindle clearly wins some key areas – Text to Speech, web browser, Range and Price of books, Apps, more in-built memory, and customer service.

Nook 2′s touch screen, its compactness, its library book support, and its faster and smoother page turns are probably the four key differentiators. Amazon has to find a way to match or counter these. It has promised library book support but it only means something when it arrives.

Engadget has a Nook 2 video and some photos that very clearly show the Nook 2′s strengths.

Unless Amazon drops the price of the Kindle WiFi by $39, and adds some big software improvements, B&N is going to increase its market share in eReaders significantly. Nook 2 is the clear winner in the Kindle vs Nook comparison.

Kobo crashes the Kindle vs Nook party with $129 touch eReader (Kobo Wireless just $99)

Wow! Kobo just totally stole the spotlight from Amazon and B&N. It’s hard to imagine any way B&N (or for that matter, Amazon) can get the attention back.

  1. Firstly, there’s a new $129 Kobo eReader with a touchscreen and WiFi. That’s a touch screen eReader at a lower price point than the Kindle WiFi.
  2. Secondly, Kobo Wireless is down to $99. It’s a bit primitive but the Kobo Store is really good.

Those are two astounding bits of news – they weren’t supposed to be announced today, and they certainly weren’t supposed to be announced by Kobo. Engadget had the scoop on the incredible $129 touch screen Kobo eReader.

Last year, Kobo pushed the envelope on pricing and introduced the first $150 eReader. This year, it’s hit the $99 mark.

Kobo vs Kindle

The Kindle is in a tough spot here (Engadget has a Kindle vs Kobo video which amply demonstrates this) -

  1. The $139 Kindle WiFi is obviously a much better device than the $99 Kobo WiFi. However, $99 is $99. It also makes Kindle with Special Offers seem a lot less special.
  2. The $139 Kindle WiFi will also get compared to the $129 touchscreen Kobo WiFi. Touch does make a difference and $10 cheaper isn’t bad either. Perhaps the most compelling factor for readers looking for total cost of ownership will be Kobo’s propensity to hand out eBook coupons and discounts.
  3. The $189 Kindle 3 is in deep trouble. An eReader that is $60 cheaper with the same eInk Pearl screen and the added bonus of touch? Amazon has to cut the Kindle 3′s price to $150 or it will start seeing a non-trivial drop in sales.

I’m still a little in shock that Kobo managed to pull this off. Who knows – perhaps it goes bankrupt running this race to $99. On paper, Kobo certainly doesn’t seem capable of taking on Amazon and B&N – but somehow it is putting up a real fight.

Concerns over Borders don’t really apply. Firstly, Kobo is part owned by lots of international conglomerates and such - It will not go down with Borders. Secondly, Kobo has its own ebook store which is very solid. Thirdly, it uses ePub so you can just read books from other stores that sell ePub – lots of stores will be happy to get your business.

Kobo vs Nook 2 – Will B&N be able to compete?

B&N’s Nook 2 might have a touch screen of its own and that would negate one of the Kobo’s big pluses. B&N also gets advance notice – even if it is less than 24 hours until the grand unveiling of the Nook 2.

The big disappointment for Godfather Riggio and the B&Nians will be that they aren’t the ones putting the fear of God into the hearts of all other eReader makers. B&N is now effectively a bridesmaid at Kobo’s wedding - a bridesmaid who just realized that her own wedding in two weeks is probably not going to be as impressive.

Apart from the element of surprise, there are two very real concerns -

  1. The $129 Kobo will be a dangerous competitor. If Kindle doesn’t get ‘em, Kobo might.
  2. The $99 Kobo is even more trouble.

You have the rock - Amazon offering up free Internet and free 3G and a very impressive ebook store. You now also have a hard place - Kobo crossing the $99 threshold and also making its high-end model an absolute steal at $129 (Can we call a $129 eReader high-end?).

If B&N doesn’t announce something very impressive tomorrow, its position as the #2 eReader and #2 eBook Store will be under severe threat.

The Kobo Threat

  1. Same eInk Pearl screen as Kindle 3 – This negates one of Kindle’s big advantages, i.e. the only reasonably priced eReader with eInk Pearl.
  2. Faster processor makes things like PDF scrolling super fast and makes page turning faster. A definite advantage – the PDF scrolling was scary good.
  3. Touch makes it easier to use for people who aren’t comfortable pressing buttons. Infra-red system so readability is not affected at all.
  4. Smaller.
  5. Low $129 Price.
  6. It’s very simple to use – one Kobo owner said it’s dead simple and that’s an accurate description. It, thankfully, doesn’t do all the social network nonsense.
  7. It has expandable memory – a microSD card slot that can take up to 32GB.
  8. [Separate Model] Older model is now just $99. It’s not impressive at all – but for people stuck in *Reading is only worth $100* Land it seems magical and revolutionary.

Please Note: This post doesn’t cover Kindle’s advantages (free 3G, better ebook store, better ebook prices, WhisperNet features, etc.). That’s because this post is mostly meant to talk about how Kobo is turning Kindle vs Nook 2 into Kindle vs Nook vs Kobo.

And that’s the key thing – 2011 was set to be The Year of Kindle vs Nook, until Kobo decided to take matters into its own hands.

Kindle vs Nook in 2011

Please Note: This is a Kindle vs Nook strategy review + predictions post. For a device comparison, check out my Kindle vs Nook Review.

The Kindle dominated most of 2010 due to Kindle 3 and Kindle WiFi being an entire generation ahead of the Nook 1. It also helped that Kindle WiFi was at a ridiculously low $139.

Nook Color dominated two emerging markets in 2010 – Reading Tablets, low-price and high-quality non-iPad Tablets. It had no competitors – it still doesn’t.

2011 promises to be different.

Kindle vs Nook in 2011 – Context & Thoughts

With Nook 2 and Nook 2 WiFi probably arriving on May 24th, and with Kindle Tablet rumored to be arriving in the second half of 2011, we suddenly have Kindle vs Nook take on a very different complexion.

  • Kindle 3 and Kindle WiFi will finally get a worthy competitor. If Nook 2 is as good at attacking Kindle weak-points as Nook 1, we’ll have a really exciting 2011.
  • Kindle Tablet will challenge Nook Color. It’s probably not lost on Amazon that if B&N keeps selling 800,000 Nook Colors a month the Nook Color might single-handedly resuscitate B&N.
  • Nook Color’s status as the absolute best reading device for reading at night will probably be threatened.
  • The iPad will become far less relevant for people looking for a reading device. A $249 Nook Color was compelling. Add on a decently priced Kindle Tablet and we might find that noticeably fewer people are buying iPad for reading.
  • A good rivalry will reinvigorate eReaders. Kindle 3 came out a year ago – There haven’t been any hugely significant advances since then. Nook 2 will force Amazon to evolve.
  • Prices will get cut further – increasing the number of people buying reading devices, increasing the percentage share of ebooks.
  • Kindle vs Nook (as opposed to Kindle vs iPad or Nook Color vs iPad) will become the major storyline for readers in 2011.

May 24th might mark the beginning of the Age of Reading Devices. A time when eReaders and Reading Tablets start selling tens of millions of units a year and begin to dominate all of Publishing. 

Kindle vs Nook in 2011 – Kindle Tablet vs Nook Color

Kindle Tablet vs Nook Color will be the battle for casual readers. Not an ‘empty as a Politician’s Speech’ + ‘make animated page turns and forget to get books in the store’ pretend-battle. This will be a real battle.

The most amusing part of it is that both sides will probably be using closed ecosystems built on Google’s ‘open’ Android ecosystem. B&N already uses Android. Amazon’s focus on building its own Android App Store suggests it’s thinking of using Android for its Kindle Tablet.

Here are some things that will define this battle -

  1. Will Amazon release a Tablet or a Reading Tablet? My guess is that Amazon will try an Apple-style ‘it’s great for reading and for 1,000 other things’ strategy. A general Tablet from Amazon would fail to effectively counter Nook Color.
  2. What price will the Kindle Tablet be at? Nook Color’s $249 price is a big part of its appeal and competitive power.
  3. What does B&N have planned for the Nook Color? It already has email, a social network, and an App Store. If B&N keeps adding more high-value features, or if the Nook App Store takes off, then the Nook Color might become the story of 2011. 
  4. The Nook App Store has got off to an interesting start. There’s no way it can compete with Amazon’s Android App Store in a broad sense – However, it might be able to compete effectively when it comes to ’Apps for Reading Tablets’ and Apps built to help readers.
  5. Can Amazon channel Android Apps into a powerful App Store? In some ways it seems almost too easy – Just take all the good apps from the Android Market and make your own store. Will it work?
  6. What will casual readers think of the Kindle Tablet?
  7. Will Nook Color end up being a Reading Tablet for readers, a cheap and hackable General Tablet for techies, or a mix of both?

The two App Stores really are the wild cards. It’s a tough exercise – both Amazon and B&N are trying to ensure quality and quantity.

Prediction: Amazon misses the mark and releases a general Tablet. It has little impact on the Reading Tablet market and very little impact on reading in general.

Kindle vs Nook in 2011 – Kindle 3 vs Nook 2

Kindle 3 vs Nook 2 is the battle of the full-featured eReaders.

A battle for hardcore readers willing and able to pay for a full-featured eReader. This is the single most important battle. The lower priced versions might get more device sales - but it’s these main-line eReaders that will capture far more book sales.

Nook 2′s ability to compete with, and perhaps even beat, Kindle 3 depends on 5 factors -

  1. Will Nook 2 leap-frog Kindle 3 technologically? Adding in Mirasol displays would qualify. Adding in just touch would not.
  2. What price will Nook 2 be at? If B&N can come in at $150 for Nook 2, with a feature-set that matches Kindle 3, it’ll put Amazon in a tough spot. 
  3. Does B&N have some hidden trump card? At various times, and for varying lengths of time, Nook has had various advantages over the Kindle – PDF support (it wasn’t there in the Kindle when Nook 1 was announced), Library Book Support (Amazon has promised this will arrive in 2011), Lending (until end 2010, only Nook had Pretend-Lending), and so forth. If B&N can create a new advantage that is as significant as any of these, it will have a powerful new weapon.
  4. Can B&N distribute and sell Nook 2 as well as Amazon distributes and sells Kindle 3? B&N still doesn’t sell Nook internationally, and its advantage in retail has been whittled down as Amazon is now available at WalMart, Best Buy, Staples, and several other retail chains. If B&N can find a way to distribute Nook internationally, or if it can find some retail distribution advantages in the US, it can tilt the contest in its favor.
  5. Could B&N use Amazon’s enemies against it? The list of Amazon’s enemies seems to grow by the day – Google, WalMart, State Governments, Publishers. If B&N can get help from one or more of these parties it stands a better chance. By the way, it’s inexplicable that WalMart is selling Kindles – Isn’t Amazon the company that shot WalMart’s dog when it killed Amazon’s pet rabbit?

Nook 1 was a surprisingly strong contender to the Kindle when it came out. Nook Color was even more impressive (though not a direct Kindle competitor). If B&N meets the bar it has set with Nook 1 and Nook Color, Nook 2 will give Kindle 3 a real run for its money.

Kindle vs Nook in 2011 – Kindle WiFi vs Nook 2 WiFi

Kindle WiFi vs Nook 2 WiFi is the battle of the low-priced eReaders.

A battle for readers at the intersection of casual and hard-core. A battle for readers at the intersection of ‘able to spend $189 on an eReader’ and ‘able to spend only $99 on an eReader’.

The main-stream media is fixated on this. But it isn’t really the battle that will define who wins the Publishing War. It’s more of a contest of who gets higher total eReader sales. Winning this and losing the Kindle 3 vs Nook 2 battle would be pretty painful.

A lot of the factors here are similar to what we discussed in the Kindle 3 vs Nook 2 section – technological advantages, price, hidden trump cards, distribution, using Amazon’s enemies as friends.

Price sensitivity is the main factor and B&N has a lot of places it can cut costs – the LCD being one obvious area. If Nook 2 WiFi can hit $99, B&N will win the lower end of the market. Given that the Nook Color comes in at $249, there’s no reason B&N can’t release a $99 Nook 2 WiFi. 

The other main factor is a strange one – promising more value for money by offering things that aren’t necessarily reading related. If B&N can bundle in a free email client, a few basic free tools, and one or two other value-add features – It will win. WiFi isn’t costing B&N anything. Neither are Apps.

Users would prefer a $99 eReader+eWriter+Email Device over a $99 eReader.

B&N could turn the ‘readers won’t pay more than $99 for an eReader’ theory on its head by providing a device for $99 that isn’t just a great eReader – It’s also a great email client and a great productivity tool and a great eWriter.

Kindle vs Nook Closing Thoughts

The success of the Nook Color has re-energized B&N. You see it in the moves it’s making – Adding an email client to Nook Color is a big deal. As is the Nook App Store. Flash support is pretty impressive too.

We’re dealing with a company that has suddenly discovered it can keep up with the technology big boys - perhaps even beat some of them. Nook Color proving itself to be the best Android Tablet (in terms of value for money and usefulness and perhaps even looks) has to have had some effect on B&N. An effect that ought to be evident in the feature-set for Nook 2.

2011 is going to be the Year of Kindle vs Nook and the beginning of the Age of Reading Devices. Not a year when iPad makes eReaders redundant but a year in which eReaders and Reading Tablets use technology to revitalize reading and further hasten the destruction of the existing Publishing hierarchy. The winner of Kindle vs Nook will be in prime position to take over all of Publishing. The loser will have to settle for billions of dollars a year in revenue from eBooks and eReaders.

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