The difference is the type of product it is. The iPhone wasn't just another phone - it was the first to include an app store to encourage a developer ecosystem,

The difference is the type of product it is. The iPhone wasn't just another phone - it was the first to include an app store to encourage a developer ecosystem, among other things. The iPhone wasn't a reimagination of the phone, or a replacement for it - it was a phone with a bunch of other cool stuff. The Kindle is just a book reader. It can show you any book you want, but it's expensive and doesn't do much more than allow you to buy and read books. I guess it can read book to you, too. But that's about it. It doesn't let you browse the web (now /that/ would be pretty awesome). It doesn't let you play games. There's no developer ecosystem that I know of for it. It's a one-function thing that's very expensive. Compare: 20 hardcover books, $20 each: $400. Kindle 2 and 4 books: $400. It only becomes cost-effective once you've spent $720 on your kindle book reading system: your Kindle, and 36 books @ $9.99 each.