Why Kindle 2's Screen Took 12 Years and $150 Million

waderoush writes "Critics are eating up everything about Amazon's Kindle 2 e-book reader except its $359 price tag. But if you think that's expensive, take a look behind the Kindle at E Ink, the Cambridge, MA, company that has spent $150 million since 1997 developing the electronic paper display that is the Kindle's coolest feature. In the company's first interview since the Kindle 2 came out, E Ink CEO Russ Wilcox says it took far longer than expected to make the microcapsule-based e-paper film not only legible, but durable and manufacturable. Now that the Kindle 2 is finally getting readers to take e-books seriously, however, Wilcox says he sees a profitable future in which many book, magazine, and newspaper publishers will turn to e-paper, if only to save money on printing and delivery. (Silicon Alley Insider recently calculated that the New York Times could save more than $300 million a year by shutting down its presses and buying every subscriber a Kindle). 'What we've got here is a technology that could be saving the world $80 billion a year,' Wilcox says."

Comments

hrmmm

[jollyreaper]

I've not yet had a chance to check one of these out. As I understand it, the look and feel of reading the eink display is just like reading bright white paper fresh from the laser printer. I've never had problems reading text on computer screens for long stretches but many people say it causes eye strain for them.

I'm curious as to how this technology scales. It boggles the mind to think it took that much time and money to develop but now that they have it, how cheap can they make it? Could they get the readers down to a more reasonable cost? And what about the books? I have no problem paying a buck or two for a rental like getting a movie out of a DVD kiosk -- I only have the dvd for a limited time, would have to pay again if I wanted it later, and have nothing to physically show for it. I feel more possessive when talking about books, especially books with DRM. DRM, unless you hack it, means your purchase is as impermanent as a rental and renting a book for $9.99 is a pretty damn expensive proposition.

This also brings us back to the issue of resale. There are so many books available on Amazon for what essentially boils down to shipping and handling. I can find even recent books for 75% off the cover price. If physical books are no longer printed or printed in far smaller runs, this means that the secondary market collapses. I can't borrow a book from a friend after they read it. I can't sell the book to a bookstore when I'm done. If my friend wants a copy, he's paying $9.99 the same as I did.

I don't know how this is all going to shake down but it'll certainly be an interesting fight.

Re:While good in one way

[greg_barton]

So while it may save one type of business, it may put others on the street.

Shall I send you a buggy whip, sir?

The math is simple. Say your subscription to the NY Times costs $1 per day, $365 per year. That's a Kindle. Even if you replace them every two years, and pay retail for them (which are both unlikely) you're still coming out on top if you give them away.

I'm sorry, but we shouldn't support a business model if it's grossly inefficient, not in this day and age.

Re:purell

[macxcool]

Anyone able to translate that into number of trees saved?

Once again, these trees are not from clear-cut tropical forests made into farmland for subsistence farming. These trees are most likely in areas managed by forestry companies who plant at least as many trees as they cut.

There are regulations in western countries and the forestry companies would be putting themselves out of business if they cut down all the trees.

Daily Show appearance

[AlpineR]

Jeff Bezos also appeared on The Daily Show with Jon Stewart a couple days ago. Jon gave him a hard time about how you have to pay $359 just for the device and another $10 per book (some of which are DRM'ed). Mr. Bezos didn't have a good response.

What I think he should have pointed out is that The Daily Show interviews many authors and it would really be nice to hear about a new book, download it, and start reading it in minutes rather than wait a few days for it to arrive in the mail.

Re:purell

[Mr. Slippery]

Once a tree is cut another one can never be regrown in the same spot! That's why we have to save trees... right?

Trees can be replaced easily. Forest ecosystems can't. If we use fewer trees, we can let some tree farms begin the slow, slow process of returning to being actual forests.

A tree farm is NOT a forest.