Kindle Fire HD Pain Points

Kindle Fire HD has, by all indications, been selling well. Kindle Fire is, according to various surveys, the #3 best-selling tablet after Apple and Samsung. Kindle Fire was #2 in the US in the 2012 Holiday Season.

It’s worth taking a look at Kindle Fire HD Pain Points. It’ll give us a better idea of areas in which Amazon can improve Kindle Fire HD and mount a stronger challenge in the Tablet Wars.

Please Also See: Kindle Fire HD Issues & Workarounds post that covers Top 10 Kindle Fire HD Issues.

Kindle Fire HD Pain Points – Top 9 Kindle Fire HD Pain Points

Please check out the Kindle Fire HD Issues & Workarounds post for solutions to most of the below issues. In this post we’re just covering a quick suggestion or workaround.

  1. Flash. This might be the #1 Pain Point. The Situation: Adobe has ended support for Flash on Android devices. This means that you have to search around and find a browser that supports Flash. You can also side load Flash from elsewhere. Solution: Amazon should include Flash with the Silk browser and should work with Adobe to extend Flash Support or create an End of Life Release that keeps working on Android. Dangers: Flash security vulnerabilities. Workaround: See forum thread for Flash on Kindle Fire HD. Also see the section below for Amazon’s solid move to support Flash on Kindle Fire HD.
  2. Books from other eBook Stores. This comes up surprisingly often. Lots of users want to read books from other stores. Solution: Sideload an Android App for B&N or Kobo to your Kindle Fire. This is mostly a case of users not knowing this is already possible.
  3. Computer (PC or Mac) doesn’t recognize the Kindle Fire. Another very common issue. Solution: For Windows you have to make sure you have drivers that support MTP (the new file protocol Android 4.0 uses; Kindle Fire is built on Android 4.0). You can do this by updating Media Player to the latest version. For Mac you can get a file transfer utility. Mac users need to install a free app, Android File Transfer, to complete a USB transfer. Visit android.com/filetransfer and follow the onscreen instructions (Thanks to Kindle Forums). For PC and Mac you can also try PTP mode (Camera Mode) instead of MTP (you can change this in Settings).
  4. WiFi doesn’t work with Kindle Fire HD. Very, very common. This problem is hard to diagnose. Restarting Kindle Fire HD and restarting router will occasionally fix it. Sometimes you will have to tweak the Kindle Fire’s settings. Tweaking the router settings might help. This varies a lot from case to case. Workaround: Check out Amazon’s Kindle Fire HD WiFi FAQ.
  5. Email isn’t working right. Solution: Amazon to devote SERIOUS time to making email work very well and smoothly. As we see with the Camera issue below, Amazon sometimes forgets areas and features that don’t directly lead to more purchases from Amazon.
  6. Camera functionality. The in-built Camera on the Kindle Fire HD is hidden. A few apps like Facebook and Skype can use it. However, there’s not really any in-built Camera App. Solution: Add a PROPER camera app that allows taking photos, taking videos, using a timer, and other features. A nice bonus would be photo sharing features and email sharing and photo printing wirelessly to printers.
  7. Battery & Battery Charger Issues. There’s something about tablets and chargers and batteries. Lots and lots of people run into one or more of – Charger not working, Kindle Fire HD not turning on, Kindle Fire not charging, Charge Indicator showing wrong amount, Charger port is loose. Potential Solution: Amazon could invest some resources into strengthening the charger and charging hardware and making the battery and battery life indicator more dependable. Not saying it’s bad – just that it can be and should be improved. Potential Workaround: Treat your charger carefully BEFORE problems develop.
  8. Apps not side loading. This is a strange one. Amazon rather generously (considering it hurts their own content sales) allows side loading of apps from other stores. A lot of people run into problems with this. Perhaps better instructions would help people. Can’t really think of a proper solution.
  9. Kindle Fire HD will not turn on. Surprisingly common. Listing this separate from the Battery Issues since it’s so common. Potential Solution: Charge for an hour or two. Unplug. Press and hold the power button for 20 seconds. This is from the Frequently Asked Questions thread.

Kindle Fire HD Pain Points – A Workaround for Flash

Here’s a solution for Flash from Laura M. Dean -

With the latest update for the Kindle Fire, Amazon has added a feature to Silk called the “Experimental Streaming Viewer” that should allow many Flash-based videos to be played on the Fire.  I have tested it with CBS, NBC and ABC, and it works.  More info:

Go to the Web tab > Menu > Settings > Accelerated page loading > turn on.

This will turn on two other settings:
- Enable Flash Forward
- Prompt for experimental streaming viewer

Complete information is here, including how to use the viewer:
http://www.amazon.com/gp/help/customer/display.html/?ie=UTF8&camp=1789&creative=390957&linkCode=ur2&nodeId=201010090&tag=thrshoguideaa-20#flash

Hopefully this works.

Kindle Fire HD Pain Points – Thoughts

It’s very surprising to see a few things -

  1. Flash is a major advantage for Kindle Fire HD over iPad. Amazon shouldn’t ignore it. The move to make the ‘Experimental Streaming Viewer’ is a good move. Amazon needs to do a lot more. This could turn into a major competitive advantage over iPad and also over other Android Tablets (since Adobe has stopped Flash support for Android).
  2. Android File Transfer App for Mac should be bundled with Kindle Fire. As should drivers for MTP for Windows 7 and Windows 8. It’s very strange to get a new device and then not have it work with your PC. Plugging Kindle Fire into a PC or Mac should start off a launcher that asks you whether you want to install drivers and/or the file transfer utility.
  3. Not sure what the solution for Kindle Fire HD WiFi issues is. Every single device runs into WiFi problems. Note: And, of course, for people who run into a WiFi problem, the only one out of their devices not working will be that one. It’s Murphy’s Laughing at You Law.
  4. Camera – These are two fundamental Tablet Use cases. It’s strange that Amazon (and B&N) ignore the Camera. At what point is Amazon going to understand – No one cares what YOU think, only what they want to do with their Tablet. Basically, a LOT of people wants dual cameras of good quality on their Tablets.
  5. Email - Having email not work well is completely unacceptable. Any amount of effort Amazon can put into this would be worthwhile. At least 25% and perhaps as many as 40% of Tablet owners would prefer a Tablet with a very solid, stable, works-all-the-time Email Client/App.
  6. Battery & Battery Charger issues. Again, every device seems to run into battery issues. Not sure if a solution exists.

Overall, Kindle Fire HD does slightly better than Kindle Fire 1 did on pain points. However, there are still way too many pain points. It’s very encouraging to see Amazon add the ‘Experimental Streaming Viewer’.

What are your Kindle Fire HD pain points? What things would you most like fixed and/or added?

Why is iPad the best Tablet available?

Over the years, various people, almost always non-technical, have asked me to recommend the best tablet for their needs. Note: This post talks about real life, not online.

  1. The first data-point that’s interesting: On finding out I work with computers, the most frequent question is – What Tablet would you recommend? I’m thinking of getting one. I don’t think PCs are going to die, not by any stretch of the imagination. However, no one ever asks about PCs or Phones. Just Tablets. Perhaps Tablets are cool and new and unknown. Perhaps with PCs and Phones, people already know enough and/or already own one. Whatever the reason, people seem to be really, really interested in buying Tablets.
  2. The second data-point: I’ve never found any user whose needs weren’t matched by the iPad. This might seem strange. However, it’s really just my experience. Online people will have a budget, prefer a certain company, be hung up on specifications, or have a certain allegiance (Android, Apple, Amazon). The people I’m meeting in real life – well, they never seem to mention price or allegiance. They just want a Tablet that gets the job done. No one ever says – What’s the best Android Tablet? iPad or iPad Mini? Which Kindle Fire? Ever. They just want something that gets the job done.

As opposed to online, in real life, people aren’t looking at a Tablet as an extension of their relationship with a favorite company, an extension of a philosophy, an accessory, or a statement of who they are.

They simply want to do X (sometimes X and Y and Z), and they wonder if a Tablet is a good choice.

Here are the two things that really surprised me -

  1. 80% of the time a Tablet is indeed a good choice. People usually want to do very non-specialized things like checking email, reading books, surfing the web. A PC is overkill.
  2. 100% of the time that a Tablet is the right choice for their needs, the iPad is the best choice as a Tablet. Yes – 100%.

All of this is anecdotal evidence, so take it with a shaker of salt.

The two things that keep striking me are -

  1. People don’t need a PC any more. They can get by with a Tablet.
  2. People don’t need any other Tablet. They can get by with an iPad.

Note: This is over a time period of 3 years. The data points have stayed consistent.

Do people not need PCs any more?

Not really. Most people don’t.

This goes against every single assumption I could make about the future of PCs and Tablets. There should be no reason for Tablets to be preferable to a PC. It’s like a Ninja choosing a butter knife instead of a katana.

However, in real life, it seems most people don’t really need a Personal Computer any more. They don’t need a desktop or a laptop. They just need a Consumption & Communication device. Most people aren’t ninjas – they just want to butter their toast.

Tablets are portable, they are focused on consumption, they are dead simple to use. They are cheap.

People never mention that iPad provided 80% of people’s computing needs at 50% of the price of most laptops and PCs. Apple didn’t win with magic fairy dust. It won on value and ease of use. If you think back to when iPad was introduced, everyone assumed it would be $1,000. $499 was a stunning price.

Most importantly, iPad covered 80% of what people wanted a computer for. It was a GREAT personal consumption device.

Whether we admit it or not, the world is moving to a state where we’ve run out of work for people to do. There just isn’t that much time needed to do your core work. 70% to 80% of people’s waking time is, or will soon be, taken up by consumption – news, weather, entertainment, movies, sports, books, communication with friends and family, watching photos, sharing how you feel about the bird fluttering by, sending a photo of your sandwich to the only 2,313 people in the world who care.

Tablets fit in perfectly. Perhaps 50% to 70% of people can survive on Tablets.

If you really think about a future world where robots handle a lot of the work and there are very few ‘critical’ jobs – 75% to 90% of the developed world’s population will simply have to find things to do with their free time. That’ll be humanity’s greatest challenge (it’s only partly sarcasm) – to amuse people who don’t know what to do with their free time.

iPad is perhaps the Best Tablet for nearly everyone who can get by on a Tablet

iPad is unencumbered. It doesn’t try to solve any problem other than provide people a consumption device.

iPad’s competitors keep trying to solve big problems like ‘providing a great keyboard’ and ‘providing content creation and not just consumption’. That’s like a movie theater company trying to educate its audience instead of entertain it.

There are a few things that make iPad the best tablet for nearly anyone who uses a Tablet in the Consumption-Enabler sense-

  1. The widest range of apps and the best app quality. Both things are critical. The more the apps, the higher the chance that you find the apps you need. The higher the quality of apps, the better your experience. The more the apps, the better the quality - the more likely you are to get by with a Personal Consumption device instead of a Personal Computing device.
  2. iPad nails the core Tablet functions. What are the main Personal Consumption areas? Books, movies, music, games, magazines, Internet, social networks, communication, photos, texting, Skype. iPad gets all/most of these right. Meanwhile, competitors like Amazon and B&N don’t even address things like taking photos and communicating. It’s as if they missed the entire ‘other people and photos and video calls are a great way to entertain yourself’ part.
  3. With iPad and iPad Mini, Apple provides both high-end and mid-end Tablets. Please Note: The comparison is against Personal Computers. By those standards, iPad severely undercuts PCs, and iPad Mini goes even more extreme. Within this ‘super high value for money’ Tablet category – iPad and iPad Mini take up the mid and high ends. Everything apart from dirt cheap personal devices.
  4. Extreme Ease of Use and High Quality Build of Hardware and Software. Smoothness. There’s smoothness in everything including in ease of use and hardware and software.
  5. Every other Tablet isn’t addressing the core needs of the people looking for a Personal Consumption device. They are still trying to make mini Personal Computers.

The last one is interesting. There are so many Android Tablets, and there will be so many Windows 8 Tablets, that sooner or later companies will stumble across the formula. However, it’ll be fortuitous and not the result of a well-planned strategy. On the other hand, a company that goes after Consumption hard could potentially blow up the iPad and iPad Mini.

7″ Tablets were a continuation of the iPad ‘Personal Consumption’ focus, just cheaper

The rise of 7″ Tablets was very interesting.

  1. Nook Color came in at $199 and demonstrated that you could get a Personal Consumption device for $199. That such a device could do 70% to 80% of what iPad could do. That’s why it did well. That’s why $199 Tablets were such a threat to the iPad. They were doing to the iPad what the iPad was doing to $1,000 laptops and desktops.
  2. iPad Mini was Apple’s response. It isn’t about screen-size (and Steve Jobs was right that 7″ means nothing). Yes, it’s more convenient. However, iPad was selling just fine. It’s only when 7″ Tablets PRICED VERY LOW came out that sales growth slowed down. Very cheap 7″ Tablets answered this consumer question exceedingly well – What percentage of my personal consumption needs can this device satisfy? At what price?

iPad Mini was necessary due to the low price and high ‘consumption coverage’ of 7″ Tablets. It delivered.

iPad Mini is a distillation of the iPad. It caters to 80% of the Personal Consumption Needs of Consumers for just $329 (65% of the price).

  1. Why is Apple not breaking out iPad and iPad Mini sales? Because iPad Mini totally destroyed iPad sales. A drop of 30% to 50% wouldn’t be out of question. Apple always reveals numbers – but now it conveniently doesn’t. How interesting.
  2. Why are Android Tablets priced at $269 and $299 suffering so much? Because iPad Mini is just a bit more expensive ($329) - Yet it delivers 90% or more of what iPad delivers, and it delivers it in very high quality. Android Tablets deliver less, in lower quality, and at a price that is not significantly lower. iPad Mini wins when we consider Percentage of Consumption Needs Satisfied AND Quality of Experience AND Value for Money.

Android Tablets will continue to rise. There are just so many of them that enough of them will hit the sweet point sooner or later – Cover most of the core consumption needs AND do it at a cheap price point.

Microsoft Tablets will rise once they get CHEAPER ones out. There are rumors of $249 and $299 Windows 8 Tablets that have 7″ screens. Those might really hurt iPad Mini if they understand that consumers are looking for consumption enabling and consumption enhancing devices.

iPad and iPad Mini will continue to be the Best Tablet available. Unfortunately, as prices of competing tablets drop, consumers will choose cheaper options.

Why is iPad the Best Tablet available?

Well, firstly, no one else is approaching Tablets the right way -

  1. Microsoft is approaching Tablets as smaller PCs. Microsoft doesn’t realize that C is for Consumption, not Computing. Its approach is great for Business, but not for everyday consumers.
  2. Google is approaching Tablets as another way to gather products (people to advertise to) for its main customers (advertisers). Android Tablets will win out because they are much cheaper. However, there is a difference between ‘Best’ and ‘Highest Selling because they are cheaper and available in 5,000 flavors’.
  3. Amazon is approaching Tablets as a way to gather customers and sell them stuff. Why is it that Amazon focuses so much on selling and so little on consumption and core Tablet features (email, camera, photos, YouTube, videos)? Because it views the Tablet as Personal Selling Device and not a Personal Consumption Device.

Apple is the only company that’s focused on the Tablet as a Personal Consumption device. Perhaps Personal Consumption Enhancer is the most accurate term.

iPad and iPad Mini are optimized for consumption -

  1. Widest range of apps related to consumption.
  2. Smoothest user experience and ease of use.
  3. Most optimized software for core tablet functions i.e. reading, watching movies, email, surfing the web, taking and sharing photos, communication, video calling, games, etc.
  4. Most optimized hardware for consumption. This is key – the hardware is optimized for consumption in many, many ways.
  5. Focus on the user experience and on the user as a consumer. Not product, not creator, not customer for things in the future – just a consumer.

A succinct way of putting it would be – Nothing comes between you and your enjoyment of free time on an iPad Mini.

Add on to this the additional stuff -

  1. iPad OS is based off of iPhone OS and has been refined for 10+ years.
  2. iPad has a lead in apps and a lead in money made from apps. Therefore, for now, iPad Apps get first priority from developers.
  3. iPad is standing on the shoulders of iPhone and iPod. This includes having a huge customer base to sell to.

All of this, and numerous other advantages, mean that iPad is the Best Tablet available. If you were to give ANY user 2-3 weeks with all Tablets. If they were free of any allegiances or prejudices (which, admittedly, is very unrealistic), they would choose the iPad 90% or more of the time.

Perhaps the more accurate statement would be – the iPad would meet their needs 90% of the time. It would meet their needs better 90% of the time.

In some cases, it’s absolutely irrefutable evidence – a much-needed app is only available on the iPad. In other cases, it’s harder to explain things – a much easier to use email program. However, that 90% estimate seems correct to me.

iPad is the Best Tablet and its destined to die on its own sword

iPad will die for the same reason that Netbooks were killing Laptops before iPad took over that duty. For the same reason that iPad is eating away at PC Desktop Sales.

People want more for less. Often they are willing to take less for less – especially if they think they are getting more for less.

Apple told users – Why pay $1,000 for that laptop? Here’s an iPad Tablet. For $499 you can do 80% of what you do. Apps are cheap, so all the software is cheap. The software and hardware might not let you do 100% of what a laptop does, but the software and hardware cover 70% to 80% of what a PC does.

It established precedent. It became OK to cut down what you could do with your Personal Computer/Consumption-Enabler.

As long as you got cheaper hardware and much cheaper software in return.

Now, Amazon and Google are telling users – Why pay $499/$329 for that iPad/iPad Mini? For $199 you can do 70% of what you do on an iPad Mini. Apps are free now – you don’t even have to pay. They might not be as pretty or as polished – but they are free.

Google and Amazon are just continuing down the path Apple started users on.

It’s very interesting in a way. Apple talks about not compromising and focusing on quality. However, with the iPad, it created a precedent of compromise – In what users expected their Personal Computer/Consumption-Enabler to do for them.

There was no compromise on build quality. Just a compromise in what the device can do and, most importantly, what the user could do with their device.

A switch from Consumer+Creator to Consumer+Consumer-Extraordinaire.

The net result is that users now expect cheaper and cheaper hardware and cheaper and cheaper software. And they are willing to compromise to get it.

Netbooks were doing exactly this – offering a compromised experience that focused on consumption and came at a very low price. The PC companies handicapped them because the low price killed their profit margins. It was inevitable that something else would finish the job. That’s where iPad came in. With the added bonus that it was a Luxury Product and a Fashion Statement. A prettier Personal Consumption Enhancer. For half the price. Does 80% of what you do with a PC.

The Age of the Personal Consumption-Enabler and the End of It

When Android and Amazon Tablets eat up the iPad, we’ll enter a newer age – The Age of the Personal Consumption-Enhancer & Advertiser. Where users will say – As long as the hardware is really cheap, and the software is really cheap, it’s fine if this device is mostly focused on consumption. It’s fine if it constantly advertises to me and tracks me and keeps trying to predict my behavior and influence it in subtle ways.

The Age of the Personal Consumption-Enhancer & Advertiser – a world of free-everything. Where the only thing that’s paid for is access to the consumer and to the consumer’s behavior.

There might be a 10% to 20% part of the market that looks for a Personal Computer. Perhaps another 10% to 15% of the market that looks for a Personal Consumption-Enabler. However, the majority of the market is going to shift to a Personal Consumption-Enhancer and Advertiser.

The Personal Consumption-Enhancer & Advertiser will eat away at the Personal Consumption-Enabler, just as the Personal Consumption-Enabler is eating away at the Personal Computer.

If Apple hadn’t introduced an iPad Mini, it would have lost a lot of market share to cheap 7″ Tablets. With the iPad Mini it has only bought itself some time. Apple can’t keep matching prices with Amazon and Google and Microsoft indefinitely. As prices go lower, things get very tough for Apple – it either gives up its great margins, or it gives up market share. It might even end up giving up both – because higher price is a core part of its identity and desirability.

Kindle vs Nook if B&N ends Nook eReaders and Tablets – It loses 50% of the most important 20% readers

B&N opened up its Nook HD & Nook HD+ Tablets to Google Play Store recently. It also did a massive $50 off and $90 off Sale for Mother’s Day.

This forced Amazon to introduce a temporary $20 discount on the Kindle Fire HD.

Soon after there were reports that B&N was considering selling its Nook unit to Microsoft for $1 billion.

TechCrunch had some additional details and two of these were very interesting (only if true) -

  1. B&N plans to end Nook Tablets by April 2014. This would suggest the Nook HD and Nook HD+ are its last tablets. Which basically means an end to the Kindle Fire HD vs Nook HD competition – the battle of the tiny closed ecosystems.
  2. B&N plans to let eReaders die out naturally – as users transition to Tablets. This doesn’t suggest an end date. However, it does suggest that B&N doesn’t plan to fight. Perhaps it ends Nook eReaders in 2014 or 2015. That would mean the end of Kindle vs Nook.

Both of these are very impactful things.

Kindle vs Nook – A Quick look back

Kindle vs Nook has had many twists and turns -

  1. Amazon introduced the Kindle eInk Reader in November 2007. Everyone (except people who actually read) pretty much wrote it off. However, by mid 2009 it began to seem that the Kindle had a good chance of becoming a hit.
  2. B&N introduced the Nook eInk Reader (with a tiny LCD panel at the bottom for navigation) in October 2009. After this, Amazon and B&N have gone head to head in the eReader market ever since. They have been #1 and #2 for most of that period.
  3. Apple introduced the iPad in March 2010. This threw things off for eReaders as people tended to prefer a multi-purpose Tablet over single purpose Ereaders, especially casual readers. Strange that companies focused on selling books would care about people who don’t want to buy devices dedicated for reading. However, that’s the path Amazon and B&N chose.
  4. B&N introduced the Nook Color. This was a reading Tablet, priced at $200, and focused on reading and reading related functions. The Nook Color took off in a major way - Illustrating that there was huge demand for a low-priced Tablet. At the time, iPad was $499.
  5. Amazon introduced the Kindle Fire in end 2011. B&N introduced the Nook Tablet, an improved version of the Nook Color, around the same time. Thanks to Amazon’s huge customer base, and to strong marketing, Amazon was able to get the lead in ‘Small Tablet’ sales over the Nook Tablet. By lead we mean a 3:1 or 2:1 lead.
  6. 2012 was eventful as we got the iPad Mini and the Nexus 7. Amazon introduced the Kindle Fire HD and the Kindle Fire HD 8.9″. B&N introduced the Nook HD and the Nook HD+ (9″).
  7. Two things happened. Firstly, Amazon and B&N’s attempt to target the iPad failed – mostly because the iPad Mini was a huge hit and beat them to the ‘let’s kill the iPad’ game. Secondly, Kindle Fire HD sold decently but B&N’s Nook HD sold poorly.
  8. Meanwhile, all through 2012 we saw more and more sales go to Tablets and 7″ Tablets and less to eReaders. eReaders were still selling 10 million+ units a year. However, they were no longer growing markets and the long-term future became unclear. We don’t know whether the lack of evolution of eReaders led to poor sales, or whether it was Tablets. However, eReader growth seems to have stalled.

This leaves us in a very interesting position.

  1. In eReaders, we have Kindle at #1, Nook at a strong but distant #2, and Kobo at #3. After that, we have a lot of smaller competitors and Sony. Kindle vs Nook is still very important. B&N routinely advances the state of the art in eReaders and drives innovation.
  2. In 9″ and 10″ Tablets, we have Kindle Fire HD 8.9″ and Nook HD+ as almost non-factors. So Kindle Fire HD 8.9″ vs Nook HD+ is mostly an academic comparison. Most people seem to prefer iPad Mini. Basically, 7″ Tablets and iPad Mini have begun to kill off the 10″ Tablet market.
  3. In 7″ and 8″ Tablets, we have iPad Mini vs Nexus 7 vs Kindle Fire HD (vs Nook HD). Kindle Fire HD vs Nook HD isn’t that important any more – Mostly because Nook HD has lost mind share. With the addition of Google Play Store it’s winning that back. So, perhaps, by mid 2013, Kindle Fire HD vs Nook HD will be meaningful again.

When you consider all this context, it’s going to be a bit sad if B&N leaves the Tablet space in April 2014 and the eReader space in early 2015. Kindle vs Nook will just be an old memory.

What happens if B&N leaves the Tablet space?

Not very much for the general Tablet space.

The best-selling Tablets are – Apple, Samsung, Google and Amazon. Depending on what month you check, one out of Google or Amazon has the #3 spot. By Google we mean the Asus manufactured Google Nexus 7.

Nook was perhaps 5th or 6th. The 5th or 6th player leaving a space doesn’t do much.

The one place it creates an impact is in the space of ‘Reading Tablets’ – a nebulous space catering to people who primarily want a Tablet for reading.

For readers, it made more sense to get a Tablet from Amazon or B&N. If B&N exits the space, then Amazon becomes the clear and obvious choice. This would mean a clear boost for Amazon and Kindle Fire HD sales. Which in turn would greatly strengthen Amazon’s lead in ebooks.

B&N’s supposed 2014 and 2015 strategy  of ending device sales and focusing on Reading Apps runs into a roadblock – Kindle Fire HD does not have a Nook reading App. If most serious readers looking for a Tablet start picking Kindle Fire HD, B&N loses these readers.

Fundamentally, B&N’s strategy is flawed. The 20% of Readers that account for 80% of book sales tend to pick either a dedicated eInk Reader or physical books or a Reading Tablet. By leaving the Reading Tablet space, B&N leaves all these users to Amazon.

These 20% ‘Best’ Customers are the stars of the rest of this post. Their importance grows as we look at Kindle vs Nook in the dedicated eReader Market.

What happens if B&N leaves the eReader Space?

We could partition out serious readers (‘Best’ Customers for Books) as readers who will buy one or more of -

  1. Paper Books.
  2. A dedicated reading device i.e. an eInk Reader.
  3. A Reading Tablet.
  4. A general purpose Tablet.
  5. A mix of one or more of the above.

By leaving the Reading Tablet space, B&N would hand over ‘serious readers’ (the ‘Best’ customers) who want a Reading Tablet to Amazon.

If B&N also leaves the dedicated reading device space (eInk based eReaders), then it also hands over the ‘Best’ Customers who want to buy a device optimized for reading to Amazon.

This creates a huge problem.

  1. Firstly, at least 25%, and perhaps as many as 50%, of the most important readers (those who buy 80% of books) will choose an eInk Reader and/or a Reading Tablet. By leaving these two areas, B&N is giving Amazon the best book buying customers.
  2. Secondly, as Amazon has stated before, people buy MORE books when they get Kindles. 2.7 times more. So these very good customers become great customers after they own an eInk Reader. Perhaps there’s a similar, though not quite as strong, effect when people buy a Reading Tablet.
  3. Thirdly, that 2.7 times figure includes paper books. It makes sense that a person who owns a Kindle and/or a Kindle Fire HD would buy their paper books from Amazon more often. If nothing else, convenience and the relationship/trust means that Amazon is likely to become the #1 choice for paper books too.

Somewhere between 25% to 50% of the ‘Best’ Readers switch over to Amazon.

Of course, this doesn’t factor in that Amazon and B&N have a rough 60% and 30% share of the ‘Best’ readers who have already switched over to eReaders and Reading Tablets. Amazon goes from strong to ridiculously strong. B&N goes from decently strong to very weak – Because the 30% share it already has will move to other devices if B&N stops making eReaders and Reading Tablets.

The Concept of the ‘Best’ Readers

In this age of political correctness, where a customer who spends $1 a year wants to be considered equivalent to a customer who spends $1,000 a year, it is perhaps unacceptable to point out that, in any market, 20% of customers are the ‘Best’ customers. The ones who basically keep the market going. It exists for every market -

  1. In movies, these are the people who watch movies in the theater and buy DVDs and digital movies. Lots of them.
  2. In video games, these are the people buying $60 games and $300 consoles and $2,000 PCs.
  3. In books, these are the people buying hardcovers and lots of books and lots of ebooks.

Whether it meets the political correctness threshold or not, the truth is that the people contributing 80% of the revenues are the ones who are keeping the industry going.

For example: On Pandora, artists get a few pennies per 1,000 songs streamed. A user might listen to Band X 50,000 times and might generate 50 cents for Band X. However, the customer who buys a concert ticket for $50 is 100 times more important. The customer who buys the CD for $10 is 20 times more important.

This is a critical distinction and this also applies to books, whether the Lives in Switzerland, Recycles 5 times a Day, Warrior Chief of Political Correctness likes it or not.

We have the ‘Best’ Readers that are perhaps just 10% to 20% of the customer base – However, these customers generate 60% to 80% of the revenue. They are, in effect, keeping the books industry alive.

There are two distributions that are generally accepted -

  1. 20% of the customers are the ‘Best’ customers. They generate 80% of the revenue.
  2. 10% of the customers are the ‘Best’ customers. They generate 60% of the revenue. 30% of the customers are ‘Good’ customers. They generate 30% of the revenue.

In either case, it’s the Good and Best customers that matter. The remaining customers don’t really matter. Of course, woe to anyone who reminds them of it.

It’s a big assumption to make. However, the facts will bear this out. Facts that only Amazon and B&N have. Which makes B&N’s decision to shift to Reading Apps even stranger.

By ending Reading Tablets and eReaders, B&N would lose the Best Customers and the Good Customers

Firstly, it’s pretty safe to say that the Best customers and the Good customers will end up with a reading Tablet and/or a dedicated reading device (if they go with ebooks). If you’re the exception that proves the rule, you’re exactly that – an exception who reads 53 books a year on your Device X which is not focused on or optimized for reading.

If B&N leaves both spaces, then it leaves behind the 20% to 30% of customers that account for 80% to 90% of book sales.

What does that leave? The remaining huge numbers (70% to 80%). Wow – that’s a lot of users. The only problem – they contribute just 10% to 20% of book sales.

Please keep in mind that this is for ebooks. B&N isn’t walking away from the Best Customers and the Good Customers in Physical Books. However, it is making them Amazon customers (via eReaders and Reading Tablets) and making them likelier to shift.

B&N might be walking away from the core audience it needs to survive

If B&N were to analyze all the data it has on reading patterns and purchase patterns, it would find the following -

  1. 30% to 50% of its ebook sales come from eReader owners.
  2. 25% to 40% of its ebook Sales come from Nook Tablet owners.
  3. The rest of its ebook sales comes from other reading apps. This might be as low as 10% or as high as 45%.

It might also find that Nook and Nook Tablet owners account for as much as 25% to 35% of paper book sales from B&N stores.

I would be willing to bet serious money that B&N never took the step of analyzing this data, especially the ebook sales & paper book sales inter-relationship. For that matter, it never even properly tried to build a connection between ebook sales and physical book sales.

By walking away from dedicated eReaders and reading tablets (and this is still an IF, based on rumors and hearsay), B&N is giving up the customers that are accounting for 65% or more of its ebook sales and 25% or more of its paper book sales.

Those users aren’t going to switch back to 100% paper books. They are going to switch to other devices that are optimized for ebooks and reading. Those, rather inconveniently, happen to be from Amazon.

If B&N ends the Nook eReader line and the Nook Reading Tablet line, it would be handing over 50% or more of its Best Customers and its Good Customers (for ebook sales) to other companies, mostly Amazon. If B&N tries to replace dedicated Nook eReaders and Nook Reading Tablets with reading apps for iPad and Android devices and Windows 8 devices, it would be switching from the Best Customers and the Good Customers to the ‘Not so Dedicated’ Readers who account for just 10% to 20% of book sales.

It’s the absolute worst strategy decision B&N could make. We wouldn’t see Kindle vs Nook replaced by Kindle vs B&N Reading Apps, we would see it replaced by Kindle vs Kobo and by Kindle vs Don’t Read. There’s no room for B&N in eBooks if it doesn’t have both a reading focused eInk eReader and a reading focused Reading Tablet.

Kindle Fire HD 2 Killer Features that would ensure strong sales

Kindle Fire HD 2 is probably going to arrive in September or October 2013, roughly a year after Kindle Fire HD arrived.

Amazon has two paths it could take -

  1. Make Kindle Fire HD 2 a more polished version of the Kindle Fire HD. Lots of incremental improvements in various areas. Since Kindle Fire HD is a pretty decent Tablet, this would seem a reasonable path to take.
  2. Add one or two or three really killer features that put Kindle Fire HD 2 head and shoulders above other Android Tablets. Killer Features that turn Kindle Fire HD 2 vs iPad Mini 2 into a Real Contest.

We know what path Amazon likes to take – the boring one with incremental improvements.

However, in 2013 and beyond, this might not be enough. Why?

Kindle Fire HD’s competitors are set to improve drastically

We will likely see each of the top 4 Kindle Fire HD competitors improve rapidly and drastically in 2013.

  1. iPad Mini 2 might be iPad Mini Retina. This would instantly fix one of the two main iPad Mini disadvantages (lower screen resolution). The other possibility is that iPad Mini 2 is a lower priced iPad Mini. This would be worse as it would eliminate the key things keeping Kindle Fire HD sales decent – higher value for money & lower price.
  2. Nook HD has already improved massively by adding Google Play Store and offering users frequent discounts. Users can get a Nook HD for $149 to $169, depending on what sale they catch. They get a great piece of hardware and also twin stores – the curated Nook App Store, the open Google Play Store.
  3. Nexus 7 2 is rumored to arrive soon with 1920 by 1200 screen resolution, wireless charging, NFC, and front and rear cameras. Nexus 7 2 is also rumored to be priced cheap at $199. This instantly makes it very competitive with Kindle Fire HD and Nook HD. Perhaps clearly better, depending on how it performs in real life.
  4. Samsung is improving its Tablets rapidly. It’s attacking both the value -end and the high-end. Thanks to the incredible success of its phones, it has a very large customer base. It sold 7.7 million Tablets (analyst estimates) in Q1 2013, which is likely to be more than Kindle Fire HDs, Nook HDs, and Nexus 7s combined.

Amazon is in a bit of a pickle. It can’t be Samsung and release 10-20 tablet models a year. It can’t be B&N and give up its entire ecosystem to Google. It definitely can’t be Apple with its large customer base of people who already own Apple hardware - People who tend to prefer Apple products, all other things being equal or close.

This makes it imperative that Kindle Fire HD 2 is -

  1. Good enough to compete in the Holiday Season.
  2. Good enough to be competitive in 2014 until Kindle Fire HD 3 arrives.
  3. A significant improvement over Kindle Fire HD. Adding dozens of incremental improvements to the Kindle Fire HD features might not be enough. Amazon must add a few killer features that set Kindle Fire HD 2 apart. Kindle Fire HD 2 needs to be a big step forward from Kindle Fire HD.

The problem with incremental improvements is that they don’t really stand out.

The Time for Incremental Kindle Fire HD Improvements is Gone

Let’s say Amazon improves Kindle Fire HD in 8-17 areas via small, incremental improvements -

  1. Higher screen resolution in the Kindle Fire HD 2.
  2. Some small interesting feature like wireless charging or NFC.
  3. Slightly better battery life.
  4. More compact and lighter.
  5. Slightly lower price.
  6. More features for enhanced reading.
  7. More Sharing and Social Features.
  8. Addition of some small free content streams for Kindle Fire HD owners.
  9. 10 more small incremental improvements.

On paper this sounds good. It also makes Kindle Fire HD competitive with iPad Mini Retina and Nexus 7 2 on paper.

However, iPad Mini and Nexus 7 have much older and stronger and richer ecosystems. What incentive is there for a user to pick Kindle Fire HD 2 instead?

Users need Killer Features to Switch

There’s no Killer Feature in the Kindle Fire HD that will make users say – Yes, iPad might have 350,000 Tablet optimized Apps, and it might be prettier and shinier, but Feature X and Feature Y in the Kindle Fire HD 2 make it the better choice.

The Best Speakers are a Killer Feature only for audiophiles. We need a Killer Feature that applies to 80% of the technology device buying population.

Amazon thinks it can cobble together 10-20 small advantages and turn them into a Killer Feature. However, people want simplicity. They don’t want to read an entire table and add up the little wins.

They want a BIG feature that will get them to buy Kindle Fire HD 2.

Apple understands this and pushes this hard. Siri. Retina Display. FaceTime. Apple will talk about all the improvements. However, it will focus on 1-4 main Killer Features and drum those into users’ heads.

So when the user has to decide what Tablet to buy, the user has a table of 27 technical specifications from one company, and it has a list of 3 Killer Features from Apple.

Guess which device the user goes with more often.

Note: If you notice the Samsung Ads, they don’t just make fun of Apple, they also highlight their own product’s killer features (sometimes even when they aren’t killer features).

A Killer Feature isn’t a tangible thing – At least the Killer Part of it isn’t

It’s almost a construct. Siri isn’t powerful for what it is. It’s powerful for what it speaks to. The message it gives – New! Only With Us! Human! Special! Magical! Your Willing Assistant! Makes You Feel Better! Makes Your Life Simpler!

You could take ANY decent, attractive feature and if you polish it a bit, package it right, and message it right - you have a Killer Feature. This is what Amazon needs to understand. A Killer Feature isn’t always born, sometimes it’s made. Sometimes it’s made out of thin air and emotions and the human touch.

What Killer Features could Amazon add to Kindle Fire HD 2 to make it ‘The Chosen Tablet’ for Holiday 2013

Well, first let’s set some ground rules -

  1. It must appeal to 50% or more of the Target Market. It can’t be a Killer Feature if it’s a Killer for just 10% or 20% of the target market.
  2. It must have a human and emotional connection. It can’t be impersonal or non-emotional.
  3. Real People should clearly understand how it benefits them. Basically, you want to show what the feature does for the user and how it feels to use it. Show the ‘friendship’/'human connection’ the feature creates with the user. This, in turn, creates a simple rule – It must be real people focused. Real People Focused – Light on an eReader. Tech Focused – NFC chip. Real People Focused – Easier payments for people in shops.
  4. It must be something your competitors can’t recreate. This is really hard to put into words. You’re telling a story. Make sure the narrative is something your competitors can’t steal or duplicate.
  5. It must have enough value or uniqueness or newness in itself to stand up to scrutiny. It doesn’t have to be a Killer Feature in value delivered. However, it absolutely must be a Killer Feature in narrative and positioning and dream selling.

With those ground rules in mind, here are some possible Kindle Fire HD 2 Killer Features -

  1. Color eInk or IGZO LCD screens. A screen technology new enough to create a distinct edge.
  2. A Book or Movie Subscription Service that’s very comprehensive. We mean something big. Perhaps a deal with the Big 5 Publishers for a paid monthly Netflix type subscription. Perhaps a deal with the top movie studios to have new releases available instantly.
  3. Folding Tablet. Super convenient 4″ device when not reading. Opens up to 8″ when you’re using it.
  4. Voice Driven Interface. Make Kindle Fire HD 2 such that you can operate it completely via voice commands (with touch also available).
  5. Gesture Recognition + Eye Tracking. Put in a tiny Kinect clone and let users do crazy things like turning a page in front of the screen to turn pages.
  6. The 3D projection screen technology that’s rumored to be arriving in a Kindle Phone 3D. An actual projecting screen would be absolute gold for selling Kindle Fire HD 2.
  7. 3D screen (same technology as 3D TVs, without requiring glasses). This is a bit risky because 3D TVs haven’t really taken off and customers still consider 3D a bit of a gimmick.
  8. Unbreakable Kindle Fire HD 2 Screen. If a mix of flexible screen technology and frame/casing improvements can deliver this, it would be a huge competitive advantage. Note: Samsung has already promised this in phones for 2013. Samsung might deliver it for Tablets by early 2014.
  9. What else? What would be a Killer Feature for Kindle Fire HD 2?

All of this becomes critical because Kindle Fire HD might have just 1 or 2 years left to make a dent.

Killer Features might be the only way for Kindle Fire HD to survive in the Tablet Market

Consider the things Kindle Fire HD 2 and Amazon will have to work against -

  1. Emotional Lock-in. There are hundreds of millions of people locked into the Apple and Samsung and Android ecosystems/brands.
  2. Actual Lock-in. People in ecosystems have bought apps and movies and more. They can’t just walk away from that. Well, they can but they don’t want to.
  3. Larger App Stores. Apple has a very large, very high quality app store. Android has a very large app store that is slowly picking up in terms of quality (although it’s still way behind Apple).
  4. Large Traffic Streams and/or Customer Bases. Apple has hundreds of millions of people on iPods and iPhones and iPads. It has hundreds of millions of credit cards. Google has a billion people on Search.
  5. Time and Experience. Apple and Samsung have a lot more experience with hardware and software.

The longer the race goes on, the harder it gets for Amazon to win with Kindle Fire HD. Why? Because more and more people get locked into one of the Big 2 Mobile Ecosystems (Apple, Android). Because the customer attachment and relationship becomes deeper.

The two most powerful ways to break the Apple+Android dominance would be -

  1. Reinvent phones and tablets. Do to Apple and Android what Apple did to Blackberry and Nokia and Motorola.
  2. Create a brand new category of device that makes Tablets and/or Phones redundant. If netbooks can disappear in a few years, then so can Tablets.

These two are easier said than done. If we’re talking about the most realistic path forward, Amazon only has one choice – create/invent/make/add/conjure up really, really strong Killer Features for Kindle Fire HD. Release a phone or a tablet with 2 or 3 Big Important Killer Features and you can carve out enough market share to start building something big. A 3rd mobile ecosystem that can win double digit market share.

Quick Aside: eInk Kindles would be great to create a 3rd Ecosystem

Amazon ignoring eInk Kindles is a bad, bad idea. It could really go after the book and notebook and paper markets and sell 100 million eInk Kindles. It could then do what Apple did – slowly release more products for these loyal users, slowly build up the ecosystem. Amazon should really rethink its lack of focus on eInk Kindles and Readers. This is a $25 to $35 billion a year market (eReaders, Books, Publishers). Perhaps larger. There’s very little competition. Perhaps most importantly, it allows Amazon to create its own iPod and iTunes. To create a hundred million users attached to Amazon devices – all in an Amazon ecosystem.

This was a clear path to success for Amazon. Amazon messed it up by not realizing the real opportunity. It didn’t help that Amazon built two separate App Stores – one for eInk Kindles and one for Kindle Tablets. That same Amazon vulnerability - reinventing the wheel needlessly.

Back to Kindle Fire HD 2 and Killer Features

Amazon needs to get to 100 million devices sold which share the same ecosystem and the same book store and the same app store and the same OS.

Since it has separated eInk Kindles and Kindle Tablets, and since it is reluctant to devote real resources on the eInk Kindles (why focus on a market that has little competition, and where you have the lead, when you could fight for the #3 spot in Tablets), Amazon only has one option.

Succeed wildly with Kindle Fire HD 2 and Kindle Fire HD 3.

Fundamentally, Kindle Fire HD 2 needs Killer Features to succeed. Kindle Fire HD 2 needs Killer Features for there to be a Kindle Fire HD 4. If Amazon doesn’t hit it out of the ballpark with Kindle Fire HD 2, it almost certainly means the end of Kindle Fire and Amazon’s ambitions in the Tablet Space.

Ergonomic Kindle Case – Would you buy an Ergonomic Kindle Case for $38?

Ambulant, prospective creators of an ergonomic Kindle case, have started a Kickstarter to fund an Ergonomic Kindle Case, called the Wingo.

Please Note: This is not an endorsement. I’m just mentioning something interesting. I don’t know whether the case actually is ergonomic or not and I’ve never used it. I also have no relationship with the people making the Wingo. Just looks like something Kindle owners would be interested in.

They aim to collect $55,000. They already have $17,619 collected and still have a massive 29 days to go.

What’s interesting is that they are trying to make an Ergonomic Kindle Case -

  1. Wingo has a Scientific Ergonomic Design that looks to me to be better than existing Kindle cases by a lot. They have medical stuff on their website.
  2. Protects the Kindle.
  3. Could potentially prevent Carpal Tunnel Syndrime.
  4. Versatile design to accommodate multiple reading positions.
  5. Existing Kindle, Nook, iPad users were consulted – including those suffering from arthritis and other hand ailments.
  6. It looks cool.
  7. They have a LOT of design details and information on the Wingo website and on the Ergonomic Kindle Case Kickstarter Page.

There are 90 or so spots left for the $38 Early Bird price.

Do I think an Ergonomic Kindle Case is a good idea?

Yes, very much so.

I use an ergonomic keyboard (Microsoft’s), and it pretty much saved my wrists and hands.

A lot of Kindle owners read a lot. Often for hours at a stretch. Often in awkward positions. It makes sense to get a case that is very ergonomic and keeps your hands and wrists healthy. Even if the ergonomic part is overstated, it should still be more comfortable than existing cases.

Things to be aware of -

  1. Kickstarter is not a ‘If I pay then I get it’ type thing. It’s like funding a startup. You might get it and help create something cool. Or you might just lose $38 forever.
  2. The Wingo case is going to be made of high quality materials – ABS Plastics, flexible rubber housing, etc. No, no aluminium.
  3. They’ll try to manufacture it in the US.

Why do they need crowdfunding?

In order to partner with a high quality manufacturer in the U.S. our first order must exceed a minimum number of units for them to take on our project. A manufacturing facility must go through an intricate series of changes to establish a process to produce a product, especially a product like Wingo Case, which is surprisingly complex (from hollow-core internal structures all the way to soft-finishing the exterior).

I think the figure they are going for is really interesting. $55,000 is really small. If they publicize this properly they could easily get $1 million or more. However, no idea if they have any marketing budget and/or a PR firm working with them. I hope they pull it off. It would be good to get an ergonomic Kindle case.

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