HighAmazon's (AMZN, news, msgs) new Kindle e-book reader is smaller in size and bigger in storage and battery life, but the jury's still out on whether it will do anything to boost Amazon's sales or stock price.
At 0.36 inch, the Kindle 2 is thinner than its predecessor -- and thinner than the iPhone and Motorola's (MOT, news, msgs) popular Razr -- and its extended battery life should let it run for two weeks without recharging, Amazon CEO Jeff Bezos said at a Monday news conference in Manhattan.
The new version is also equipped to read pages aloud to users, though apparently in the halting speech of a digitally automated customer-service representative rather than the smooth oration of an audio book.
Investors were unimpressed by the new Kindle. Amazon's stock fell 1.3% by noon ET as details of the device circulated on the Web early Monday. Shares ended the day up just a fourth of a percent. One reason: Amazon, which has steadfastly declined to provide sales figures, revealed few new details Monday about demand for the wireless device, saying only that the Kindle accounts for 10% of book sales on Amazon.
"We've been selling e-books for years, and, guess what, it didn't work -- until 14 months ago," Bezos said.
Using sales figures from Sprint Nextel (S, news, msgs), which supplies the Kindle's 3G Internet connection, Citigroup (C, news, msgs) analyst Mark Mahaney estimates about 500,000 devices were sold last year.
The device also fails to deliver on two enhancements widely rumored on the Web: a color version or a faster Web surfing experience.
Without sales figures, it's difficult to know whether the device should be heralded as the savior of the printed word or the harbinger of its downfall. Bezos was careful to portray the device as the ally of print, not a competitor -- as was author Stephen King, who made a surprise appearance to read from "Ur," a book he is selling exclusively for use on the Kindle.
"You are going to like books, too. It isn't as though the two things are in conflict with one another," said King.
Hear Stephen King read from his new book
The new Kindle is priced at $359, the same as the earlier version. It is available for pre-order now and will be shipped beginning Feb. 24.
Produced by Darragh Worland
Published Feb. 9, 2009