Articles about Amazon

Yesterday, I excitedly preordered Barnes & Noble's "Nook" ebook reader. Today, I cancelled the order -- and I'm none to happy about it. Why can't Barnes & Noble learn from its past mistakes? The bookseller's digital titles are way overpriced -- at least compared to Amazon (Sony charges even more than both booksellers for many titles).

Quick examples -- and more will come later in this post: Twilight by Stephanie Meyer: $6.59 from Amazon; $8.79 from B&N. Philip K Dick's Do Androids Dream of Electric Sleep?: $8.38 from Amazon; $11.20 from B&N. (Sony charges $9.89 for the first and $9 for the second.)

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For the second time in three months, Amazon has dropped the price of the Kindle 2 e-reader. The device which began shipping in February for $359.99 begins October at $259.99.

Since debuting, the Kindle has dominated e-reader mindshare in the United States, but has faced serious competition from senior e-reader maker Sony, which not only makes the lowest priced product, but also the most feature-packed product as well. Sony's Daily Edition Reader has 3G wireless from AT&T, a touchscreen interface, and the ability to borrow e-books from participating libraries.

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As first reported by TechFlash's Eric Engleman, Amazon has elected to settle out of court with a Michigan high school student, who sued the Kindle maker last July after having remotely deleted copies of George Orwell's 1984 and Animal Farm from his and about 2,000 other users' Kindles. The electronic publisher in that instance did not actually have the rights to those works from Orwell's estate; but as Amazon acknowledged in its published settlement order (PDF available here, courtesy Puget Sound Business Journal), deleting those works from their systems was a violation of Amazon's own Terms of Service.

The settlement is unique in that Amazon was willing to let its terms be known. Student Justin Gawronski's attorneys will receive $150,000, on the stipulation that the attorneys' portion will be donated to a charity that promotes literacy, educational, or children's causes. Amazon will continue to honor its plan to give purchasers a $30 gift card.

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Through new partnerships with Verizon Wireless, Barnes & Noble, Best Buy, and other major US firms, the European-based Philips spin-off hopes to at least hobble the Amazon giant in North America. Set for release next month, Irex's 8.1-inch touch screen eReader will be better than the Kindle in almost countless ways, officials contended during a press conference today in New York City.

Unlike the Kindle, which is dedicated to sales from Amazon.com, the Irex DR800SG will support Barnes & Noble's eBookstore and ultimately other e-comm sites, magazines, and newspapers, too, said Hans Brons, CEO and founder of Irex. Based in the Netherlands, Irex has been carefully eying the US e-reader marketplace for more than a year now, according to Brons.

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While the distributor of several e-books was wrong to assume that the "classic" nature of certain titles allowed them to be sold under the public domain license, there's been considerable concern over Amazon's right to "undo" the sale of those titles through its electronic Kindle Store. Last July, Amazon CEO Jeff Bezos issued a mea culpa, saying the unannounced deletion of various titles including George Orwell's 1984 was "stupid, thoughtless, and painfully out of line with our principles."

This morning, as first noted by Gizmodo's Rosa Golijan, individuals affected by Amazon's unannounced deletions are now receiving e-mails that appear to be from Amazon, offering customers the opportunity to the company to deliver legitimate copies of their books free of charge, or alternately to receive $30 gift certificates or refund checks from Amazon.

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This past year, what has very clearly distinguished one company's cloud services from another has been their intended uses. Whereas Microsoft Windows Azure has been a custom applications platform, and Salesforce.com has built a business logic platform around Force.com, Amazon Web services has been about deploying entire servers in the cloud, letting customers lease the processing time and bandwidth to deploy their own Web fronts on Amazon's hardware.

Up to now, the question for AWS customers has been to deploy or not to deploy; but this morning, data center architects will be asking how much to deploy. With the rollout of what it's calling Amazon Virtual Private Cloud, the service will enable a new class of customers to deploy limited resources into the cloud, and then secure and administer those resources through the customers' own firewalls and admin software. Amazon announced the initial beta of VPC to select customers this morning.

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The U.S.' second most popular retailer, Target announced that it will be ending its 8-year relationship with Amazon.com and launching its own new platform for Target.com, which does not rely on Amazon's services.

Steve Eastman, president of Target.com said, "The strength of Amazon's technology and fulfillment services has been a contributing factor in Target.com's success. However, to deliver a customized multi-channel experience for Target's guests, we believe it is in Target's best interest going forward to assume full control over the design and management of Target's e-commerce technology platform, fulfillment and guest services operations."

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A Michigan teen has filed suit in Seattle against Amazon, maker of the Kindle eReader, for deleting a copy of 1984 on which he was keeping notes for his AP English coursework. Justin Gawronski is suing in order to impress on Amazon the importance of not simply deleting purchased texts -- whatever their copyright or licensing status.

The suit, which seeks class-action status for those affected by the deletion several weeks ago, also names Antoine J. Bruguier, a Kindle owner from Milpitas, California. KamberEdelson is the Chicago-based legal team handling the suit.

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Nearly a week after it deleted illegal copies of George Orwell's 1984 and Animal Farm from customers' Kindles without warning, Amazon's CEO Jeff Bezos posted a personal apology to the Kindle user forums. Bezos called the company's handling of the decision "stupid," and said it would learn from the mistake. But he didn't say what would change, if anything.

This is an apology for the way we previously handled illegally sold copies of 1984 and other novels on Kindle. Our "solution" to the problem was stupid, thoughtless, and painfully out of line with our principles. It is wholly self-inflicted, and we deserve the criticism we've received. We will use the scar tissue from this painful mistake to help make better decisions going forward, ones that match our mission.

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Today, Amazon announced that it will be acquiring popular Internet clothing and footwear store Zappos.com for approximately $807 million. The closing price of Zappo's stock will actually drive the deal up to around $880 million when it closes this fall. Additionally, Zappos employees will receive $40 million in cash and restricted stock. The company was voted #23 in Fortune's Hundred best companies to work for in 2009 poll.

Zappos will retain the same management team that's helped the brand get as popular as it has. The company's CEO, Tony Hsieh issued a statement today saying, "Over the next few days, you will probably read headlines that say 'Amazon acquires Zappos' or 'Zappos sells to Amazon'. While those headlines are technically correct, they don't really properly convey the spirit of the transaction. (I personally would prefer the headline 'Zappos and Amazon sitting in a tree...') We plan to continue to run Zappos the way we have always run Zappos -- continuing to do what we believe is best for our brand, our culture, and our business. From a practical point of view, it will be as if we are switching out our current shareholders and board of directors for a new one, even though the technical legal structure may be different."

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UPDATE: Amazon issued a statement Friday night saying, "When we were notified of this by the rights holder, we removed the illegal copies from our systems and from customers' devices, and refunded customers. We are changing our systems so that in the future we will not remove books from customers' devices in these circumstances." However, the company did not touch on whether it would monitor more closely what books get uploaded as part of its self-serve system for publishers to avoid such circumstances altogether.

The press loves a juicy story, and Amazon served one up on a silver platter this morning by automatically deleting certain copies of George Orwell's 1984 and Animal Farm from customers' Kindles. But many facts were left out of this media frenzy, namely that the ebooks were essentially pirated copies sold for 99-cents by a company that had no rights to the material.

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Nokia earnings sequentially up, at least

Morning of Thursday, July 16, 2009 • One of the most wince-inducing earnings calls for reporters in recent months has been Nokia's, but things seem to be a tiny bit brighter at the Finnish phone firm as sales rose 7% in Q2 from the previous three months. They're still down 25% year-over-year, of course, but company officials Thursday said they believe the market for mobile devices to be "bottoming out." (The company still chose to revise its earlier target of raising its market share; now the company says it aims to maintain that share at 2008 levels.) Earnings per share were likewise down year-to-year (65.5%) but up sequentially (233.3%).

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Microsoft has known about 0-day vulnerability for months

Since spring 2008 • Really, Microsoft? All the work you've put into getting right with the security community, and this is the result? Computerworld's mighty Gregg Keizer leads the charge on the news that Redmond has known about the recently publicized DirectX vulnerability for years. Years.

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Marking the second generation Kindle's fifth month of availability and its passage into the "majority phase" of the Rogers adoption curve, Amazon has lopped 15% of the popular e-reader's price. The device's price today was dropped to $299.

Though Amazon CEO Jeff Bezos has said the company may never disclose the Kindle's sales figures, an estimated 300,000 Kindle 2 units were reportedly shipped in April. In May, Amazon unveiled the Kindle DX, which has actually struggled to keep up with demand.

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In March, Discovery Communications, the company responsible for the Discovery Channel and Animal Planet cable networks, filed a patent infringement suit against Amazon.com for its Kindle e-reading device. The patent is property of Discovery founder John S. Hendricks, and was granted in 2007, nearly ten years after it was filed. The company sought damages and royalties from Amazon and its successful Kindle.

Amazon fired back at Discovery on May 15, in two separate legal actions. The first is a categorical denial of all of Discovery's complaints and countersuit in the US District Court in Delaware. And the second is a suit in US District Court in Western Washington, claiming that the Discovery Channel's online store uses search and recommendation methods that infringe on four of Amazon's patents. Like Discovery's suit beforehand, it asks for royalties and damages sufficient to compensate for the infringement.

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