Today, Amazon.com debuts a new addition to its successful Kindle line of eBook readers. Amazon is aiming the new device at students as a textbook replacement, as well as customers who prefer a larger screen for reading newspaper and magazines.

The main difference between the DX and the Kindle 2 are:

  • Larger screen size (9.7” versus 6”)
  • Adds auto-rotate ability
  • Larger storage space (stores 3,500 books versus 1,500)
  • 36% higher price tag ($489 versus $359)

We love the Kindle, and we think that Amazon has a truly innovative product plus services story. Many other companies have dabbled into the eBook space in the past with limited success. Amazon is the first to make it “big”.

But we feel that Amazon has missed the mark with the new DX. What customers need isn’t just a larger screen. In order to be successful with students, Kindle needs to add touch, inking and Bluetooth connectivity. Students make notes and highlight on their textbooks. They can’t do that in a very natural way with the Kindle DX. Typing on the device keyboard is awkward. Selection of things to highlight is awkward with the device joystick. Students need to be able to make notes and highly via inking or a wireless keyboard, and be able to transfer their notes to and from a computer. The current experience is subpar. Coupled with the high price tag, it makes for a difficult sell.

Still, Amazon has a unique edge over other eBook makers – their vast library of contents. Amazon has a lot of room to experiment in this market and they can afford to sell their devices for a premium for the foreseeable future.

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