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	<title>Comments on: Price and Value</title>
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	<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html</link>
	<description>Dispatches from a Small Business</description>
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		<title>By: Michael Stack</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-17057</link>
		<dc:creator>Michael Stack</dc:creator>
		<pubDate>Mon, 02 Mar 2009 19:12:20 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-17057</guid>
		<description>Boy, the point about proprietary systems is so accurate. That is a huge problem with Linux (though Linux has many positive qualities that help compensate). There are so many flavors (or &#039;distributions&#039;) of Linux,and endless ways to customize them, that it is difficult to make assumptions about an end-user&#039;s Linux system. 

Package management software helps a lot, but there is a real trade-off between the ability to customize, and the amount of work that must be done by developers/admins to support the many varieties of Linux.</description>
		<content:encoded><![CDATA[<p>Boy, the point about proprietary systems is so accurate. That is a huge problem with Linux (though Linux has many positive qualities that help compensate). There are so many flavors (or &#8216;distributions&#8217;) of Linux,and endless ways to customize them, that it is difficult to make assumptions about an end-user&#8217;s Linux system. </p>
<p>Package management software helps a lot, but there is a real trade-off between the ability to customize, and the amount of work that must be done by developers/admins to support the many varieties of Linux.</p>
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		<title>By: Matthew Brown</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-16952</link>
		<dc:creator>Matthew Brown</dc:creator>
		<pubDate>Wed, 25 Feb 2009 23:58:45 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-16952</guid>
		<description>HTRN: I wouldn&#039;t necessarily bet on that; the E-ink display could still be quite costly, given that they aren&#039;t yet in wide use, while everything in the Eee is commodity.

But yes, we&#039;re still in the early-adopter phase of e-books.  I would expect, if Amazon&#039;s Kindle experiment is a success, that in a couple of years we&#039;ll be seeing models for about a hundred bucks.

The other question is what proportion of Amazon&#039;s profits on the enterprise are on the reader vs. the content.  I believe I&#039;ve read that Amazon&#039;s margin on the content isn&#039;t huge on most titles, because of worry that they&#039;ll kill the market if they price too high, so the Kindle isn&#039;t following the &quot;cheap, subsidized razor, expensive blades&quot; model of profitability.</description>
		<content:encoded><![CDATA[<p>HTRN: I wouldn&#8217;t necessarily bet on that; the E-ink display could still be quite costly, given that they aren&#8217;t yet in wide use, while everything in the Eee is commodity.</p>
<p>But yes, we&#8217;re still in the early-adopter phase of e-books.  I would expect, if Amazon&#8217;s Kindle experiment is a success, that in a couple of years we&#8217;ll be seeing models for about a hundred bucks.</p>
<p>The other question is what proportion of Amazon&#8217;s profits on the enterprise are on the reader vs. the content.  I believe I&#8217;ve read that Amazon&#8217;s margin on the content isn&#8217;t huge on most titles, because of worry that they&#8217;ll kill the market if they price too high, so the Kindle isn&#8217;t following the &#8220;cheap, subsidized razor, expensive blades&#8221; model of profitability.</p>
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		<title>By: HTRN</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-16928</link>
		<dc:creator>HTRN</dc:creator>
		<pubDate>Tue, 24 Feb 2009 18:58:52 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-16928</guid>
		<description>I would like to point out in comparison - Asus is selling Eee1000HDs at 300 bucks, and I imagine they&#039;re more costly to produce than Kindle. Keep in mind that at this time, the Kindle is A) only in it&#039;s second generation, and demand is relatively small, at least compared to the likes of laptops. Those who are buying now are the so called &quot;early adopters&quot;, who&#039;s willingness to pay has always paved the way for later, significantly cheaper versions of the same devices. I do think that Kindle will drop significantly in price if Amazon continues to develop it as a product.</description>
		<content:encoded><![CDATA[<p>I would like to point out in comparison &#8211; Asus is selling Eee1000HDs at 300 bucks, and I imagine they&#8217;re more costly to produce than Kindle. Keep in mind that at this time, the Kindle is A) only in it&#8217;s second generation, and demand is relatively small, at least compared to the likes of laptops. Those who are buying now are the so called &#8220;early adopters&#8221;, who&#8217;s willingness to pay has always paved the way for later, significantly cheaper versions of the same devices. I do think that Kindle will drop significantly in price if Amazon continues to develop it as a product.</p>
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		<title>By: LoneSnark</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-16927</link>
		<dc:creator>LoneSnark</dc:creator>
		<pubDate>Tue, 24 Feb 2009 17:56:15 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-16927</guid>
		<description>As epobirs says, it is option 2. Amazon and its suppliers would love to meet the demand but the technical challenge is more than they can handle at this time. Maybe they will get better and drive down the price to MR, or maybe they will not. 

As for jhc, I am not in that particular field, but I suspect there are limits placed upon me. If the technical challenge exceeds their ability then most likely it will exceed mine, with potentially even worse yields. My assertion was not that they are incompetent, simply that they wish they knew more about their own process. This is, of course, assuming none of the needed techniques or designs are patented.</description>
		<content:encoded><![CDATA[<p>As epobirs says, it is option 2. Amazon and its suppliers would love to meet the demand but the technical challenge is more than they can handle at this time. Maybe they will get better and drive down the price to MR, or maybe they will not. </p>
<p>As for jhc, I am not in that particular field, but I suspect there are limits placed upon me. If the technical challenge exceeds their ability then most likely it will exceed mine, with potentially even worse yields. My assertion was not that they are incompetent, simply that they wish they knew more about their own process. This is, of course, assuming none of the needed techniques or designs are patented.</p>
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		<title>By: jhc</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-16924</link>
		<dc:creator>jhc</dc:creator>
		<pubDate>Tue, 24 Feb 2009 15:56:07 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-16924</guid>
		<description>LoneSnark - As an engineer, I&#039;ll agree the price may be too high on a cost-of-materials-and-labor basis. But that&#039;s not the What The Market Will Bear point.

If you think you can sell Kindle&#039;s for less than $359 profitably - either by improving the design or with different production techniques - then I think you ought to have at it. I&#039;d buy one.</description>
		<content:encoded><![CDATA[<p>LoneSnark &#8211; As an engineer, I&#8217;ll agree the price may be too high on a cost-of-materials-and-labor basis. But that&#8217;s not the What The Market Will Bear point.</p>
<p>If you think you can sell Kindle&#8217;s for less than $359 profitably &#8211; either by improving the design or with different production techniques &#8211; then I think you ought to have at it. I&#8217;d buy one.</p>
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		<title>By: epobirs</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-16923</link>
		<dc:creator>epobirs</dc:creator>
		<pubDate>Tue, 24 Feb 2009 15:49:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-16923</guid>
		<description>Contrary to what LoneSnark may believe, the Kindle&#039;s display is not a trivial COTS item yet and is a big reason for the price. Yields on e-paper production are still lousy and that is a big price factor that Amazon cannot affect with investment to production capacity. The display OEM is either going to master their process for a more effective price or a competitor will win the business.

I&#039;m anxiously awaiting Plastic Logic&#039;s product. I really like the form factor that emulates a hardback and magazines in size but should still be very portable to anyone who has ever traveled with a laptop.

As for solar panels, I think that is best left as an external accessory to charge any number or variety of devices. For the car, I like thte idea of a fold-up panel that acts as a windshield shade. This hides your car interior and if nothing is in need of charging can instead make sure the car&#039;s battery is topped of while exerting a little power to keep the interior cooled. I&#039;d pay good money for that in SoCal  summers and imagine it would score pretty high in Arizona as well.</description>
		<content:encoded><![CDATA[<p>Contrary to what LoneSnark may believe, the Kindle&#8217;s display is not a trivial COTS item yet and is a big reason for the price. Yields on e-paper production are still lousy and that is a big price factor that Amazon cannot affect with investment to production capacity. The display OEM is either going to master their process for a more effective price or a competitor will win the business.</p>
<p>I&#8217;m anxiously awaiting Plastic Logic&#8217;s product. I really like the form factor that emulates a hardback and magazines in size but should still be very portable to anyone who has ever traveled with a laptop.</p>
<p>As for solar panels, I think that is best left as an external accessory to charge any number or variety of devices. For the car, I like thte idea of a fold-up panel that acts as a windshield shade. This hides your car interior and if nothing is in need of charging can instead make sure the car&#8217;s battery is topped of while exerting a little power to keep the interior cooled. I&#8217;d pay good money for that in SoCal  summers and imagine it would score pretty high in Arizona as well.</p>
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		<title>By: Bruce Yelen</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-16922</link>
		<dc:creator>Bruce Yelen</dc:creator>
		<pubDate>Tue, 24 Feb 2009 15:09:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-16922</guid>
		<description>As a Kindle owner I agree with everything you mentioned in your blog entry.  I&#039;m surprised you didn&#039;t mention travel.  It is comforting to get on a long flight knowing there is no possibility of running out of reading material!</description>
		<content:encoded><![CDATA[<p>As a Kindle owner I agree with everything you mentioned in your blog entry.  I&#8217;m surprised you didn&#8217;t mention travel.  It is comforting to get on a long flight knowing there is no possibility of running out of reading material!</p>
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		<title>By: coffee</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-16914</link>
		<dc:creator>coffee</dc:creator>
		<pubDate>Tue, 24 Feb 2009 03:24:09 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-16914</guid>
		<description>I&#039;ve dropped my Kindle a few times already (not on purpose of course) and it seems to be working without a hitch; so they&#039;re durable at least</description>
		<content:encoded><![CDATA[<p>I&#8217;ve dropped my Kindle a few times already (not on purpose of course) and it seems to be working without a hitch; so they&#8217;re durable at least</p>
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		<title>By: Jay</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-16913</link>
		<dc:creator>Jay</dc:creator>
		<pubDate>Tue, 24 Feb 2009 02:40:42 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-16913</guid>
		<description>&quot;My take on it would be the price is too low, since even at $359 demand is exceeding supply.&quot;

The obvious answer is that evil corporations purposefully underproduce to keep prices too high for hard work middle class families.

</description>
		<content:encoded><![CDATA[<p>&#8220;My take on it would be the price is too low, since even at $359 demand is exceeding supply.&#8221;</p>
<p>The obvious answer is that evil corporations purposefully underproduce to keep prices too high for hard work middle class families.</p>
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		<title>By: Allen</title>
		<link>http://www.coyoteblog.com/coyote_blog/2009/02/price-and-value.html/comment-page-1#comment-16903</link>
		<dc:creator>Allen</dc:creator>
		<pubDate>Mon, 23 Feb 2009 21:47:03 +0000</pubDate>
		<guid isPermaLink="false">http://www.coyoteblog.com/?p=7196#comment-16903</guid>
		<description>My Kindle is finally on the way!  Woo-hoo!

That said, I wouldn&#039;t read too much on the delays.  My two-bits is that Amazon doesn&#039;t want to be in the hardware business.  They&#039;re just using this as a means to stoke the fires.  They&#039;ll be happy to step aside when the time comes.  But with essentially only Sony in the businesses they need more press to garner attention and sales that will drive mass production.   And I think they&#039;re onto something in acknowledging that the real beauty of this thing is having instant access to specific sources.  I need to be able to grab that new Flex 3 book via my Kindle while I&#039;m bored riding the train in the morning.  If I wait until I&#039;m at work, I&#039;m probably not going to order the book but decide to just make do with info on the internet.</description>
		<content:encoded><![CDATA[<p>My Kindle is finally on the way!  Woo-hoo!</p>
<p>That said, I wouldn&#8217;t read too much on the delays.  My two-bits is that Amazon doesn&#8217;t want to be in the hardware business.  They&#8217;re just using this as a means to stoke the fires.  They&#8217;ll be happy to step aside when the time comes.  But with essentially only Sony in the businesses they need more press to garner attention and sales that will drive mass production.   And I think they&#8217;re onto something in acknowledging that the real beauty of this thing is having instant access to specific sources.  I need to be able to grab that new Flex 3 book via my Kindle while I&#8217;m bored riding the train in the morning.  If I wait until I&#8217;m at work, I&#8217;m probably not going to order the book but decide to just make do with info on the internet.</p>
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