Amazon third generation Kindle versus Apple iPad (2)

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 Two  The iPad has a backlit LED display, which is not easy on the eye. On the other hand, Kindle uses digital ink called eInk that does not cause the eye to strain.

 Three  The 6-inch screen Kindle, which cost only $189 a month back following a price cut, now is even cheaper - only $139 (though it supports only Wi-Fi). Amazon has also slashed the price of the bigger 9.7-inch screen Kindle DX from $489 to $379, besides making improvements on the device - Kindle DX now comes in a smart graphite shell and boasts of a better, high contrast electronic ink display. The new Kindle DX also comes with free 3G wireless connection without the baggage of monthly bills or annual contracts unlike the earlier model.

On the other hand, the iPad is much pricier - it costs between $499 and $829 in the US, depending on the storage capacity and whether it is Wi-Fi or 3G-enabled.

The new Kindle is also cheaper than rival e-readers in the market. Barnes & Noble's Nook costs $199 (Wi-Fi and 3G) and $149 (Wi-Fi only), Borders Group's Kobo e-Reader costs $149 and the Sony Reader Daily Edition costs $250 (the non Wi-Fi e-reader retails for $150).

 Four  In case of the Kindle, you don't pay separately for the wireless connectivity because it's included in the price of the e-book that you download. However, in case of the iPad, you need to sign up for a separate data plan.

 Five  The batteries of the Kindle offer far better usage time than that of the iPad's. In fact, Apple faces a lawsuit that complains that far from behaving "like a reading book...iPad overheats so quickly under common weather conditions that it does not function for prolonged use either indoors, or in many other warm conditions, for a variety of common uses such as, but not necessarily limited to, an e-reader, e-mail tool, Web browser and/or game/entertainment unit."

 Six  Apple's iBook Store is a far cry from Amazon's Kindle Store. The Kindle Store boasts of over 630,000 books, including new releases and 104 of 112 New York Times Bestsellers which are typically $9.99 or less, over 50 top US and international newspapers including The New York Times, The Wall Street Journal, USA Today, The Washington Post, Financial Times, The Times (UK), The Daily Telegraph and The Daily Mail, and over 35 top magazines, such as The Economist, Newsweek, Time, The New Yorker, Forbes, Fortune and PC Magazine. The Kindle store allows users to purchase books, magazines or newspaper online, download them in less than 60 seconds, store them in their personal e-library, and never lose them (Kindle books are automatically backed up by Amazon so customers can re-download titles from their library).

 Seven  The new 6-inch screen Kindle measures 7.5x4.8x0.335 inches and weighs only 8.5 ounces (Wi-Fi model). The bigger 9.7-inch Kindle DX measures 10.4x7.2x0.38 inches and weighs 18.9 ounces. In comparison, the iPad measures 9.56x7.47x0.5 inches and weighs 1.5 pounds (Wi-Fi model). In other words, the Kindle - both 6-inch and 9.7-inch models - is smaller and weighs much less than the iPad and is easier to carry around.

 Eight  Though the iPad features some cool stuff like accelerometer sensor for auto-rotate and a multitouch display, yet, clearly none of them is actually a deal-breaker for a potential e-reader buyer.

Not surprisingly, despite the iPad doing well, earlier this month Amazon said sales of its second-generation Kindle have tripled since June.

Sales surged primarily because the company slashed its price from $259 to $189 in June.

The price cut had also helped sale of Kindle e-books surge and outpace sale of hardcover books.

Amazon said it has seen sales of e-books more than triple in the first half of 2010 as compared to year ago period. The company said in the past three months it has sold 143 Kindle books for every 100 hardcover books while in July, sales of e-books accelerated to 180 sold for every 100 hardcover versions.

The success of the Kindle, analysts said, show that Amazon's e-reader is far ahead of rivals such as Borders' Kobo, Sony Reader, Barnes & Noble's Nook and Apple's iPad, which was billed as a 'Kindle killer' at the time of its launch, market analysts said.

According to the analysts, no matter how well the iPad does, there are plenty of customers left who want a dedicated device like the Kindle. Perhaps that is why Amazon has tried to make the latest Kindle look less like Apple's do-it-all iPad and more like a cheap, highly portable, digital paperback.

Kindle's success is "clearly an indication that the iPad is complementary to the Kindle, not a replacement," Jefferies & Company managing director Youssef H. Squali said.

It shows that many people do not consider iPad to be a reading device as Kindle is and strong sales of iPad and Kindle reveal that many people desire to own both, the analyst said.

Agrees Forrester Research analyst James McQuivey. According to McQuivey, Amazon is dominating e-reader/e-book business just as Apple is dominating music sales, thanks to iPod.

"Amazon has the clear lead," McQuivey said. "Right now everyone is now fighting over who is number two and number three. There probably won't be a number four."

According to McQuivey, e-reader sales in the US will grow to 6.6 million in 2010 and 8.7 million in 2015.

And, that is good news for Amazon, which the analyst estimates has sold about 4 million Kindles in the US to date and will top 6 million by the year's end.