Quote:
Originally Posted by kjk
I wonder if the product differentiation (wifi, 3G, wi-fi+3G) is part of Amazon's move towards a 3G data plan-as they develop their App Store, the 3G data consumption could be much greater as new apps appear for the device...at least, well beyond the book store buying/rudimentary web browsing it does now.
The wifi units could sell for considerably less if Whispernet weren't part of the equation.
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I disagree. Nook includes both 3G and wifi, and sells for the same price as Kindle, for basically the same components (replace keyboard with touch screen). iPad charges $130 more for 3G hardware, but it is a more demanding device, and Apple generates no direct income as a result of people using it (unless there's some revenue sharing with AT&T that we don't know about). By contrast 95%+ of 3G access of a typical Kindle is associated with purchasing activity so Amazon is happy to subsidize 3G hardware/usage in return for that captive audience.
I don't think many would want a wifi only Kindle, even if it saved $50 on the purchase. 3G is just too convenient a proposition when you don't have to pay a contract. Amazon wants you to be always connected. Disconnected customers can't purchase anything. Wifi is just icing on the cake for a smaller base that is outside 3G coverage, or for whom wifi is faster than 3G.
As for apps, you'll be charged a subscription or it will be built in to the cost of the app. So app users will pay for additional 3G bandwidth required (over 100Kb/month). (from
KDK FAQ). Of course Amazon can still change the policy, as there are no apps now.