Amazon.com, Inc. (AMZN) just announced a brand new, premium e-reader, the Kindle Oasis.
If it seems odd that AMZN would introduce a new e-reader even as sales of the devices plummet, think of why Apple Inc. (AAPL) released the 4-inch iPhone SE: because even the reduced number of buyers is still significant, especially when most other players have bailed on that market.
Kindle Oasis Overview
Amazon is pushing the new Kindle Oasis as its new flagship e-reader, and at $289.99, it’s definitely priced like one.
AMZN says the Oasis is 20% lighter and 30% thinner than any previous Kindle. It features a dual-battery system (one in the device itself and one embedded in a removable leather cover) for the longest Kindle battery life yet.
The resolution of the 6-inch Paperwhite display has been bumped to 300 dpi and its front lighting system features 60% more LEDs. That means the Kindle Oasis has the sharpest display of any Kindle and looks better when reading in the dark as well.
Amazon paid particular detail to ergonomics and “book feel,” since this new, eighth-generation Kindle is aimed squarely at serious readers. The leather cover is meant to mimic the look and feel of a book. Open the cover and the Kindle turns on, close it and it hibernates.
At just 4.6 ounces and with a hand-friendly grip that shifts the center of gravity of the device to where the spine of a book would be, it’s meant to be comfortable and familiar for long reading sessions.
Page turning is accomplished using either the touch display or physical buttons, and the new Kindle has an accelerometer that detects whether the reader is right or left handed and automatically adjusts the button functionality appropriately.
Why Release a New Kindle?
Back to the question of why Amazon would release the Kindle Oasis.
With more people using tablets and phablets to read e-books, the market for standalone e-readers has taken a dive from 20 million in 2011 to just 12 million last year. E-reader pioneer Sony Corp (ADR) (SNE) abandoned the market and Barnes & Noble, Inc.’s (BKS) Nook is outdated and perpetually in danger of being discontinued, leaving Rakuten’s (RKUNF) Kobo as the only real remaining e-reader competition. And AMZN already had three decent Kindle e-readers in its lineup, ranging from the $79.99 Kindle to the $199.99 Kindle Voyage.
The reasoning for releasing the new Kindle Oasis is similar to why Apple put out the iPhone SE.
In Apple’s case, despite the fact that everyone was moving to big smartphones, the company sold over 30 million 4-inch iPhones in 2015. That’s a relatively small number, and many smartphone companies don’t bother to chase the small-phone fans. But in doing so, Apple picks off some low-hanging fruit, keeps customers on its platform and stands a very good chance of convincing owners of older small iPhones to upgrade.
Amazon has similar reasoning with the Kindle Oasis. There may only be 12 million e-reader buyers out there, but most of them are buying Kindles. That keeps them on Amazon’s platform, buying Kindle e-books and possibly springing for a Prime membership as well.
And by releasing a new e-reader that’s laser focused on hardcore reading fans — the kind of people who tend to hate the compromises of the tablet reading experience — it stands a good chance of having a chunk of existing Kindle owners upgrading to the new e-reader, despite its lofty price tag.
The attention to detail paid to the physical reading experience may also convince some die-hard dead-tree book lovers to finally make the leap to e-books as well.
And if you’re wondering if this is it, if the Kindle Oasis is the last e-reader on Amazon’s product development chart, there’s one key feature the new Kindle lacks.
Kobo has offered a waterproof, sandproof e-reader for several years now, and considering how many people like to read at the beach or by the pool, that seems like a very useful capability. So expect a ninth generation Kindle to arrive next year, this time touting water resistance as its key selling proposition — and yet another worthy upgrade for existing Kindle owners.
Amazon is taking preorders for the Kindle Oasis as of today, with delivery starting April 27.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
