The price will clearly come down over time and the hardware will improve just as they did with the Kindle. The value proposition for Amazon is very similar to

The price will clearly come down over time and the hardware will improve just as they did with the Kindle. The value proposition for Amazon is very similar to the Kindle: sell a device that adds further value to the Amazon ecosystem and drives demand and ad-hoc purchasing. They also have more room to experiment with a phone vs. a book reader since there is less focus on the reading experience.