Best Values in eReaders – A Comparative Review

Through the trail blazed by Amazon’s Kindle series of eReaders numerous competitors made their way to the arena. Some survived the years, a few found bigger partners to run with, while others yielded ground. Below is a representative list of the churn in the industry last year:

1. Hearst Corporation: News Corp acquired Hearst Corporation’s Skiff Reader in June 2010. Terms of the deal were not disclosed. But, if the unforgiving environment for new readers is any indication, Rupert Murdoch acquired it for a throwaway price. Apparently, News Corp was interested only in the software platform that runs the device.
2. Foxit: Their reader, eSlick, was considered among the best due to its excellent pdf support. But last month, the company announced plans of ceasing development of the hardware and offering the software for other digital book providers.
3. Interead: A small start-up from UK made an emphatic splash at the 2009 Book Expo America when it announced its reader COOL-ER. But by July 2010, it went bankrupt.
4. Plastic Logic: This Company is pioneering the use of plastic substrate instead of silicon. Their premium reader the QUE proReader announced with big fanfare at CES was targeted towards business users. But, in August, Plastic Logic announced the Que as no longer commercially viable.
5. iRex Technologies: Netherlands based iRex delayed their Digital Reader 800 launch for not getting FCC approval on time. The original plan was to release it in time for the holiday shopping season. But in June, the company filed for Chapter 11.
6. Polymer Vision: The Company enjoyed a good following with its distinct bendable e-paper display, but ran out of capital before the projected launch date of the reader Readius. The company warned about funds being too low for the launch to go through in April and filed for bankruptcy protection in July.

A flurry of undaunted players, are entering the ring this year. Below is a summary with projected release dates, status, and other relevant details:

Product	Thumbnail	Release Date	Pricing	Description
Entourage eDGe E-Book Reader		3/12/2010	$499	Distinct look with a dual-screen (9.7” e-ink and 10.1” LCD) display, WiFi enabled, and comes with a virtual keyboard.
Kogan eBook Reader		08/27/2010	AU$189 (About US $170)	Marketed as a reader made in Australia for native use, it uses the open EPUB format along with a number of other formats. It does not have WiFi or 3G.
Kobo eReader by Kobo Inc		06/17/2010	$129	A Borders book-store backed reader from Australia with features similar to the Kogan. The original pricing of $149 made it cheaper than the Kindle but the Kindle 3 WiFi release at $139 had them scrambling and eventually reducing the price to the current $129. Borders also has an alternative smaller (5” screen) reader from Aluratek at $99.
Alex eReader by Spring Designs		04/14/2010	$399	The winner of Best of CES 2010 eReader category, it is a dual-screen Android driven device allowing it to run Android applications. The dual functionality puts it closer to the Apple iPad than Amazon’s Kindle.
Pi by Infibeam.com		02/24/2010	Rs 9999 (~$220)	A standard 6” player from India with WiFi, 512MB storage, an SD card slot, and multiple language support. The store has over 1,00,000 titles currently available. It can also double as music player and a rudimentary games console.
Wink by EC Media		08/19/2010	Rs 11490 (~$250)	Another 6” player from India with 2GB storage, and SD card slot, and multiple language support. Has a tie-up with DC Books and the store has over 2,00,000 titles.
Gorld 600TW		03/15/2010	2880 Yuan (~$420)	A full-featured 6” combination player from China with a cellphone, WiFi, GSM GPRS, and blue-tooth.

* HP Slate, Samsung E6 Slider, and Samsung E61 did not make this list, as they are not yet generally available. Txtr by Wizpac, the eReader from Germany, also is not listed above for; it is only available on pre-order (299 Euros) without a set delivery date.

Below is a list of new versions of eReaders released in the last year with pricing and summarized feature descriptions:

Product	Thumbnail	Release Date	Price	Description
Amazon Kindle Wi-Fi		08/25/2010	$139	3rd generation 6” reader. No 3G, but pricing makes it an unbeatable deal.
Amazon Kindle Wi-Fi 3G		08/25/2010	$189	Pricing again makes this an outstanding deal, with 3G functionality!
Amazon Kindle DX		08/25/2010	$379	Premium 9.7” reader with WiFi and 3G.
Barnes & Noble Nook		06/21/2010	$149	WiFi only economical alternative of the original Nook priced $40 lower.
iRiver Story			185 pounds in the UK (~$250)	Korean reader with some unique features and very good build quality but pricing is too high.
Cybook Opus by Bookeen		05/07/2010	$199.99	Smaller 5” screen with 1GB storage and Micro SD card option.
Elonex eBook		01/04/2010	129 pounds in the UK	Smaller 5” screen with SD card and preloaded with 100 classics. Built-in Adobe Reader Mobile.

* Sony Reader Pocket, Touch, and Daily Editions along with the Hanlin & Hanvon eReaders from China are not listed above, as their 2010 versions are not generally available yet.

Summary & Recommendation:

Overall, based on popularity, reputation and brand recognition, the best value options are:

1. Amazon Kindle 3 Wi-Fi,
2. Barnes & Noble Nook,
3. Kobo eReader,
4. Alex eReader.

One big decision point when choosing amongst these is epub support: Amazon’s eBook format is proprietary. The rest of the competition supports epub (click to see the huge almost free epub selections). Also, Amazon announced a library lending feature for Kindle on 04/20/2011 which would further differentiate Kindle from its competitors. If you are OK with being tied to Amazon’s proprietary file format, then choose the Kindle – the hardware pricing & ebook selections on the Kindle are hard to beat. Otherwise, choose either the B&N Nook or the Kobo eReader (Australia only) depending on where you are from. Alex eReader is a great option, if you are looking for a single device that can run applications and be an eReader as well. When looking for values, it would be sacrilege not to mention India’s $35 Android tablet set for release on 01/2011 - unfortunately, dashing the hopes of millions, the project is delayed at least till the summer, as they dropped the manufacturer HCL Technologies. 

Related Posts:

1. Best Values in eReaders - A Comparative Review.
2. Kindle eReaders - A Comparative Review.
3. Kindle 2 eBook Reader - Is it Bleeding Edge? - A Frugal Take.

Last Updated: 05/2011.

Stock Portfolio and Watch List Updates for September 2010

Following are the activity from the previous month:

1. The cash covered puts we wrote on Emerson Electric (EMR September 2010 43) at $2.30 (6/10/2010) expired worthless.
2. Bought back the cash covered puts we wrote on Nutrisystem (NTRI September 2010 17.5) at $1.70 (4/19/2010) for $0.10 just before expiry so as to avoid the small possibility that the share would get exercised – it closed at $17.54 that day.
3. The covered calls we wrote on ICICI Bank (IBN September 2010 40) at $5.15 (3/10/2010) were called away as the shares closed well above that price. We are still long on the remaining 60% of our holdings.
4. Wrote covered calls on ICICI Bank Shares (IBN Jan 2012 55 at $5.10) with one-third of our remaining shares.
5. Wrote cash covered puts on VF Corp (VFC), Cisco Systems (CSCO), and Berkshire Hathaway (BRK.B) with roughly 2.5% of our total portfolio value each. The details are: VFC Nov 2010 70 at $3.10, CSCO Jan 2012 20 at $2.64, and BRK.B Jan 2012 75 at $7.15.
6. Added to our positions in Altria (MO), Pfizer (PFE), Sysco (SYY), and Intel (INTC) with about 3% of our total portfolio value on 9/3/2010. The details are: Added two-thirds more MO at $22.89, Added 40% more PFE at $16.48, Added one-fourth more SYY at $28.58, and Added 60% more INTC at $18.43.
7. Added about 1% of our total portfolio value in cash.

 The cash coverage requirements on the puts account for about 44% of our cash position. The cash position in our portfolio is still pretty high at around 46%. We will continue to use cash-covered puts along with direct puchases spread-out over a period of time to build the portfolio.

Below is our updated portfolio – it is aound breakeven:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	19.19	24	2.14	25.06	0.10
Philip Morris International (PM)	1/4/2005	32.19	56.10	2.00	74.26	0.11
Kraft Foods (KFT)	Various	26.33	31.95	2.27	21.36	0.11
Pfizer (PFE)	Various	22.13	17.40	2.17	(21.37)	0.07
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	49.24	2.63	107.19	0.17
Advantage Energy Fund (AAV)	11/2/2006	3.85	6.14	0.55	59.48	0.10
Central Europe & Russia Fund (CEE)	Various	39.23	36.40	2.27	(7.20)	0.01
Itron Inc. (ITRI)	11/07/2007	85.01	59.16	1.05	(30.49)	None
Anthracite (ACPIQ – formerly AHR)	11/09/2007	7.97	0.01	0.00	(99.91)	0.00
iRobot (IRBT)	12/18/2007	18.65	19.38	1.38	4.81	None
LDK Solar (LDK)	01/22/2008	30.49	8.85	0.47	(70.98)	None
Aegon N.V. (AEG)	04/28/2008	15.99	6.15	0.33	(61.53)	0.00
Frontline Limited (FRO)	10/06/2008	36.95	28.89	1.54	(12.10)	0.06
DryShips Incorporated (DRYS)	02/09/2009	6.96	4.13	0.51	(40.77)	0.00
Plum Creek Timber (PCL)	07/23/2009	30.50	35.09	2.50	15.05	0.17
CPFL Energia S.A. (CPL)	07/28/2009	50.45	69.52	2.47	37.80	0.21
BP plc (BP)	08/05/2009	51.49	38.46	1.37	(25.30)	0.10
AT&T (T)	08/27/2009	26.38	28.58	2.03	8.32	0.13
Sysco Corporation (SYY)	Various	25.92	29.98	2.67	15.65	0.10
Exelon (EXC)	12/30/2009	49.38	42.98	2.29	(12.97)	0.21
Telefonica SA (TEF)	02/09/2010	68.74	74.50	2.65	8.30	0.29
Vonage Holdings (VG)	04/06/2010	1.51	2.50	0.89	65.09	0
Archer Daniels Midland (ADM)	04/23/2010	28.27	32.27	2.30	14.13	0.09
Intel Corporation (INTC)	Various	21.91	19.42	2.77	(11.36)	0.11
Google Inc. (GOOG)	05/03/2010	528.36	527.29	1.88	(0.20)	0
Cardinal Health (CAH)	05/06/2010	34.42	33.45	1.79	(2.82)	0.08
Pearson PLC (PSO)	05/06/2010	14.32	15.71	1.96	9.68	0.19
Nokia (NOK)	05/14/2010	10.35	10.06	1.79	(2.80)	0.17
Harris (HRS)	06/07/2010	45.65	45.37	2.42	2.20	0.09
Beckton Dickson (BDX)	06/23/2010	70.20	74.28	2.64	5.81	0.11
Cash				46.27
Total Portfolio					0.59	2.67

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
Ameritrade (AMTD)	5/21/2008	17.69	01/19/2010	17.45	(1.33)	(0.02)
AMTD Jan 17.5 Covered Calls (TQAAW)	1/19/2010	NA	9/10/2009	NA	NA	0.22
COST Jan 60 Covered Calls (PRQAL)	1/19/2010	NA	9/10/2009	NA	NA	0.06
IBN Mar 40 Covered Calls (ITZCN)	1/22/2010	NA	10/06/2009	NA	NA	0.20
Costco (COST)	8/01/2009	62.27	02/09/2010	58.18	(6.57)	(0.08)
AAV Aug 7.5 Covered Calls	8/21/2010	NA	3/9/2010	NA	NA	0.06
NTRI Sep 17.5 Puts	9/17/2010	NA	4/19/2010	NA	NA	0.19
IBN Sep 40 Calls	9/18/2010	NA	3/5/2010	NA	NA	0.18
EMR Sep 43 Puts	9/18/2010	NA	6/10/2010	NA	NA	0.12
ICICI Bank (IBN) – Called Away	5/18/2006	27.54	9/18/2010	39.76	44.88	0.43
Realized Gain/(Loss) YTD	-	-	-	-	-	1.32

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.

We have covered calls written against one-third of our ICICI Bank (IBN) shares (Jan 2012 55). We also have cash covered puts on Glaxo (GSK) shares (Jan 2011 35), Nucor Steel (NUE) shares (Jan 2011 40), Automatic Data Processing (ADP) shares (Jan 2011 40), Ameritrade (AMTD) shares (Feb 2011 15), Qaigen (QGEN) shares (Nov 2010 17.5), Costco (COST) shares (Jan 2011 55), VF Corp (VFC) shares (Nov 2010 70 at $3.10), Cisco (CSCO) shares (Jan 2012 20 at $2.64), and Berkshire Hataway (BRK.B) shares (Jan 2012 75 at $7.15) with a cash coverage requirement of about 44% of our cash position.

We added Quality Systems (QSII) to our watch list. Our current watch list follow – Applied Materials (AMAT), Air Products & Chemicals (APD), Brown-Foreman (BF-B), BHP Billiton (BHP), Caterpillar (CAT), Cresud (CRESY), Disney (DIS), Darden’s Restaurants (DRI), AgFeed (FEED), Goldman Sachs (GS), Home Depot (HD), McDonalds (MCD), China Nepstar (NPD), NYSE Euronext (NYX), Owens & Minor (OMI), Pitney Bowes (PBI), Quality Systems (QSII), UPS (UPS), VF Corporation (VFC), and Waste Management (WM).

Economy, Business, Credit, and Debit @ the Roundup #23

Welcome to the September 23, 2010 edition of the Roundup.




Wise Bread presents 5 Loan Options For Those With Good Credit posted at Wisebread.


debt kid presents Bringing Debt Into a Marriage posted at DebtKid.



Leave Debt Behind.com presents Frugality Can Be a Pleasant Living Experience posted at Leave Debt Behind.


BudgetSnob presents How to Blow $70,000 in 8 Months posted at Budget Snob.


Matt T. Henterly presents How to Deal With a Foreclosure (Based on Real World Experiences) posted at The SimpleChecking Blog, saying, "Sadly, I've been through the foreclosure process a number of times - and here's what I've learned."


Arjun Rudra presents Be Mindful Of The Risk Of Inflation Says Norman Raschkowan, North American Strategist For Mackenzie Investments posted at Investing Thesis, saying, "This past summer has taken investors on a roller coaster of a ride with capital markets rising and falling so much, it’s no wonder investors are feeling queasy. Mixed economic data may be stoking fears of a “double dip” recession, but one North American strategist, says that while there will be an extended period of moderate economic growth, the chances are slim we’ll see another actual recession hit."



Silicon Valley Blogger presents On Travel Credit Cards: How To Travel With Money posted at The Digerati Life, saying, "Thanks!"

All Others

Steve presents IRS Debt | 2009 Taxes posted at 2009 Taxes, saying, "When you discover that you owe the IRS money from a past tax return filing, turn to professional help to quickly pay off what you owe and stay out of trouble."



Mike Piper presents Replacing the 2% Schwab Credit Card posted at The Oblivious Investor, saying, "2% cashback on all purchases is hard to beat. Unfortunately, the card is no longer available to new users. What's the next best thing?"



Susan Howe presents How to Find Unclaimed Money (and Unclaimed Property) posted at Get Rich Slowly, saying, "Here are recommended methods in finding and reclaiming lost properties."



freefrombroke presents How Can I Improve My Credit Score? 8 Ways to Increase Your Rating posted at Free From Broke, saying, "Your credit score can either cost you or save you money down the road. A better score can save you thousands. Here are eight ways to improve your credit score."



Scott Lee presents Why Learning About the ?Law of Attraction? is a Waste of Time! posted at Scott Free Thinking.



Christien presents Avoid Online Payday Loan Scams ? Your Checklist posted at Online Payday Loan Companies Reviewed For Your Safety.



Moneyedup presents The Importance of Understanding How Money Works posted at MoneyedUP, saying, "Money isn't everything, but we all should be putting our money to work for us."



assdfil presents Chase Sapphire Preferred Card Review | Is the 25k Point Bonus Worth It? posted at NerdWallet Blog - Credit Card Watch, saying, "Chase is now offering the Sapphire Preferred credit card in addition to the normal Chase Sapphire card. The main difference is that Sapphire Preferred has an $85 annual fee (waived the first year), while Sapphire does not. What's the catch? Is it worth it?"



Jessica Bosari presents How to Use Credit Cards Responsibly | billeater.com posted at Billeater, saying, "Responsible credit card management helps all aspects of your financial life."



Daniel M. Wood presents How to Use Motivation to Accomplish Your Goals and Start Living Your Dream Life posted at Looking to Business, saying, "To all of us wishing to succeed, motivation is the bread and butter in which we will forge our success.
If we don’t have the motivation to work hard, day in and day out towards our goals we will fail (or at least not succeed as quickly or well as we otherwise would have)."



Hussein Sumar presents Tax Saving Tips for IRA Investors - After Tax Contributions (Basis), Income in Respect of Descendent, 10% Excess Tax & Substantially Equal Periodic Payments (SEPPs) posted at Roth IRA, saying, "Thousands of IRA investors miss out on important tax benefits each year because they are not familiar with the Tax Act and laws. Others make crucial errors when filing their tax returns. For instance, IRA investors may pay taxes on monies that should have been tax free or pay excise taxes on IRA distributions when these distributions should be free of tax. Our aim in this article is to highlight some IRA tax laws and how you can benefit from them."



Neal Frankle presents Best Small Business Ideas 2010 And Beyond posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "The best small business ideas are easily within your grasp. Many have low capital requirements and don’t demand expensive and time consuming training."



George Estremera presents River Offers: Best Products On Planet Earth? posted at georges_log.



Andrew Scarpelli presents Having To Give Two Weeks Notice posted at Stuff You Should Hate.



Super Saver presents A Simple Way to Build Wealth posted at My Wealth Builder.


Joe Plemon presents Five Steps Toward Automating Your Way to Wealth posted at Personal Finance By The Book, saying, "Will power won't get the job done, but automating your finances will. This post explains how."


Tim Chen presents Rewards Showdown - Chase Sapphire vs Capital One Venture posted at NerdWallet Blog - Credit Card Watch, saying, "The Chase Sapphire and the Capital One Venture Rewards cards are both high-profile travel rewards cards for people with excellent credit. At first glance they seem pretty similar, and even their signup bonuses and rewards programs overlap. But when you really look at the numbers, some glaring differences appear."


Madeleine Begun Kane presents Tax Cut Tomfoolery posted at Mad Kane's Political Madness.


Darwin presents Apparently, Americans DO Care About “The Rich” – Half Support Tax Cuts for “Top 2%” posted at Darwin's Money, saying, "Contrary to what you may hear in the press, fully half of Americans are actually concerned about cutting taxes solely on the top 2%. Here's why."



Control your Cash presents Mailbag! posted at Control Your Cash, saying, "Is compound interest working for you or against you?"



Martin presents Starting an Online Business posted at Impact Your Money, saying, "Join me as I take you with me on my journey to start an eCommerce/online business."


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Carnival of Road to Financial Independence #23

Welcome to the September 21, 2010 edition of road to financial independence.

Beating Inflation

Alexander presents Nokia Is A Bargain posted at Dividend Stocks, saying, "What company manufactures the largest number of cell phones in the world? Learn why Nokia is a bargain."

Frugal Living

David presents Are You The Real Card Holder? posted at Credit Card Offers IQ, saying, "Are you the real card holder?"



Madison DuPaix presents Uncovering Rewards Programs for Every Purchase You Make posted at My Dollar Plan, saying, "Here is a great breakdown of some rewards programs that will help you save, some you would never even think of!"



Aaron presents Ten Common Fees Prepaid Cards Charge posted at Prepaidcards123.



Winkblu presents The NEW F-Word? posted at WinkBluDreams.


MoneyNing presents Money Mistakes That (Mostly) Women Make posted at Money Ning, saying, "Women are prone to make certain money mistakes more often than others."



nissim ziv presents Do you hate your job? Top Reasons why People Hate Their Jobs posted at Job Interview Guide, saying, "There can be many negative factors that may lead someone to feel he hates his job, such as: bad company management, bad boss, dull assignments, routine job, workplace environment, relationship between co-workers, low salary, no-feedback received, no career enhancement/development etc etc."


Susan Howe presents 5 Insurance Policies You Shouldn’t Be Caught Without posted at Welcome to the Insure.com Insurance Blog: Life Insurance, Health Insurance and Car Insurance news and opinions, saying, "Here are five recommended insurance policies that you should buy to protect your assets in the event of an unexpected catastrophe."



Missy Diaz presents 5 Scary Ideas To Save on Your Halloween Costume posted at Hot Costumes Blog, saying, "A fun article I wrote on 5 scary ideas to save on Halloween costumes. Let me know if it gets approved. Cheers!"



Roshawn Watson presents Is Extreme Frugality For You? posted at Watson Inc, saying, "Regardless of the size of that paycheck, for most people it is never quite enough. This is commonly referred to as the rat race. Recently, I read that nothing could be more insulting to the rat. Even rats know better than to stay in this silly model."


Sun presents Rent Textbooks To Save Money posted at The Sun’s Financial Diary.


Daniel M. Wood presents 10 Techniques That Will Help You Become More Successful posted at Looking to Business, saying, "The hardest part about succeeding is that their is too much to do, so much advice to get and to make it you have to not only work hard but also right.
How do you know what you are doing is right?"



FIRE Getters presents 12 Tips To Lower Your Heating Bill posted at FIRE Finance, saying, "The cost of energy is rising everyday. Whether it be electricity, gas, water or sewage, our utility bills are becoming higher with each passing month. Consequently most of us are looking for ways to trim our energy expenses and boost our savings. As winter sets in, the cost of heating our houses will be a major concern .."


me in millions presents Coupon-ing Start posted at me in millions, saying, "I talk about how I got my start using coupons and finding deals."


Wenchypoo presents The 50% Solution posted at Wisdom From Wenchypoo's Mental Wastebasket, saying, "How to hang onto your money (while you're making it , or afterwards)."

Passive Income

Medhat Youssef presents Free of charge And Paid Forms Of Marketing Business Web Advertising Could be Utilized posted at Cashed.


Kai S. presents Make Residual Income posted at Internet Business Tactics, saying, "Being able to make passive income is something that can make you financially independent. There are some disadvantages however."



PT presents Mystery Shopper Jobs: Deciphering the Mystery posted at Prime Time Money, saying, "Make some extra income while you shop. But know the truth about mystery shopper jobs before you try it."

Reducing Expenses

Neal Frankle presents How to Discharge Debt And Is It Worth It? posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "The best way to discharge debt is to pay it. But sometimes, that’s just not possible."


freefrombroke presents What’s This Groupon I Keep Hearing About? posted at Free From Broke, saying, "Groupon is an online service that offers up daily coupons which can save you from 50-90%!"



Brian Cull presents How-to graphical budgeting posted at Living at the Top of the Bell-Shaped Curve, saying, "How-to guide on an easy-to-start, simple way to track your budget by graphing"



Charles Chua C K presents How Many Credit Cards Do You Have? posted at All About Living with Life.



Praveen presents Free Credit Reports and FICO Scores posted at My Simple Trading System.



Khaleef @ KNS Financial presents How to Create a Budget – Evaluate Expenses posted at Faithful With A Few, saying, "Establishing goals and setting up a budget is not the end. You must now evaluate your spending to be sure that your money is working toward your goals!"

Stock Investments

Rob presents IRA Hardship Withdrawal posted at Stock Tips, saying, "Are you going through hardships and need to withdrawal money from your IRA? Familiarizing yourself about the IRA withdrawal rules is crucial to avoid penalties and fees."



FMF presents The Active versus Passive Decision posted at Free Money Finance, saying, "Why passive investing beats active investing."


Dan presents The 7 Deadly Sins of ETF Investing – Are You Guilty? posted at ETF Base, saying, "ETFs are better than mutual funds and stocks in many aspects, but there are several risks and downsides many investors are unaware of ranging from futures roll to how leveraged ETFs work. Learn about the 7 Deadly Sins of ETFs."


Ken presents Retirement Planning: Understanding the Various Types of Investment Assets posted at Spruce Up Your Finances, saying, "Identifying various types in order to diversify your retirement investment portfolio"




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Kindle eReaders - A Comparative Review

Kindle has come a long way since our review from early last year. Kindle2 had failed to fascinate us then for the following reasons (click for a Kindle 2 Intro & Review):

1. The available Kindle titles and versions are a mere minority of what the printed book world has to offer,
2. Amazon is yet to develop a “Used Book” pricing/selling model for eBooks.
3. Pricing is not palatable. To enchant the masses, a better model would be the tried and true approach adopted by game console manufacturers of giving the hardware away at below-cost while making it up in title sales.
4. Title pricing is overkill, especially since there is no used book market.
5. Lending is not a Kindle virtue – not even to other Kindle owners.
6. Kindle’s wireless purchase/download interface (Whispernet) is restricted to within the US. Even within the US, coverage over Sprint’s network is limited. Once the connection is in place, the Internet access over the network comes free, courtesy of Amazon’s deal with the carrier.
7. Kindle’s ergonomics are below par. Although lightweight at just over 10 ounce it is still heavy to clutch for extended periods of time, especially with one hand. In fact, given the placement of buttons single-handed operation is impossible.
8. Kindle’s e-ink screen, while a big improvement over LCD screens, doesn’t compare well to printed text on real paper. Akin to real books, the absence of back-lighting makes Kindle unsuitable for night reading – ideally, non-intrusive lighting which can illuminate the text and the background in a graded manner is required.
9. Kindle lacks any support for the visually impaired.

Amazon lowered the lofty launch pricing of Kindle2 in three tiers. From the February 2009 price of $359 – the pricing went down to $299 in July, to $259 in October, and to $189 in June of 2010. A premium version called Kindle DX was unveiled in June 2009 for $489. A larger screen size (9” vs 6”), accelerometer (auto-rotate pages between landscape and portrait display by turning the device), and native support for PDF files set it apart from the Kindle 2. In October 2009, an international version of Kindle 2 replaced the US domestic version with added standard GSM and 3G supports, thereby allowing the use of the Whispernet interface in over hundred supported countries. Pricing was a slight premium at $259. In June 2010, the price decreased to the original Kindle 2 exit pricing of $189. In January 2010, an international version of the Kindle DX was released. As with the international version of Kindle 2, the Kindle DX also ships in over 100 countries.

Amazon introduced a new generation of Kindles’ (nicknamed “Kindle 3” by the media) in July 2010 - shipping began in late August. Amazon subdued the critics on pricing with this release, by offering a toned down version called Kindle Wi-Fi (no 3G support) for $139. For $50 more, a version with 3G is available and it replaces the Kindle 2 International Edition. A premium version called the Kindle DX Graphite priced at $379 replaces the Kindle DX International.

The major new features and improvements of the Kindle 3 include WiFi, audible and voice guides, additional dictionary and languages, better contrast, more storage, quieter page turns, smaller form factor, twice the battery performance, etc. Below is a summary of the features in the three Kindle 3 models:

Product	Kindle 3 WiFi	Kindle 3 WiFi + 3G	Kindle 3 DX
Price	$139 ($114 with Special Offers)	$189	$379
Display	6”	6”	9.7”
Screen Type	E-Ink with 50% better contrast than previous model	E-Ink with 50% better contrast than previous model	E-Ink with 50% better contrast than previous model
Battery Life	1 month – wireless off, 3 weeks – wireless on	1 month – wireless off, 10 days – wireless on	2-3 weeks – wireless off, 7 days – wireless on
3G Wireless	No	Yes	Yes
Wireless Coverage	Local WiFi only	100 countries – fee coverage	100 countries – free coverage
Wi-Fi	Yes	Yes	No
Supported File Formats	Kindle (AZW), TXT, PDF, Audible (Audible Enhanced (AA, AAX)), MP3, unprotected MOBI, PRC natively; HTML, DOC, JPEG, GIF, PNG, BMP through conversion.	Kindle (AZW), TXT, PDF, Audible (Audible Enhanced (AA, AAX)), MP3, unprotected MOBI, PRC natively; HTML, DOC, JPEG, GIF, PNG, BMP through conversion.	Kindle (AZW), TXT, PDF, Audible (Audible Enhanced (AA, AAX)), MP3, unprotected MOBI, PRC natively; HTML, DOC, JPEG, GIF, PNG, BMP through conversion.
Archive Support	Yes	Yes	Yes
Text-to-Speech Function	Yes	Yes	Yes
Portrait & Landscape View (Accelerometer)	Yes	Yes	Yes
Storage	3500 books	3500 books	3500 books
Download Speed	60 seconds	60 seconds	60 seconds
Whispecsync	Yes	Yes	Yes
Weight	8.5 ounces	8.7 ounces	18.9 ounces

Through the different iterations in the last eighteen months, Amazon has successfully altered Kindle from a niche product to one with mass-market appeal. The path was bumpy with several missteps, but Amazon to its credit attended to nearly all of these concerns in a satisfactory manner.

1. Terms of Service violation: This occurred when Amazon withdrew George Orwell’s Animal Farm and Nineteen Eighty-Four in July 2009 and then remotely deleted the files from the devices and provided a refund to the purchasers. A lawsuit requesting class-action status was settled in September of the same year with Amazon offering to restore the deleted files and altering the TOS to explicitly state that content once purchased will not be remotely deleted without user consent or request of refund.
2. Abuse of Pricing Power: Jeff Bezos declared in 12/2009 that 65% of the revenue from eBook sales belongs to Amazon and the remainder split between the author and the publisher. The press was all uproar over this revenue sharing ratio – especially in the face of Apple’s App Store ratio of 70% to the publisher. Almost immediately, Amazon retracted offering to match publisher royalty at the App Store, subject to the publisher agreeing to certain conditions.
3. Download Charges: Absence of additional charges to download purchased content over Amazon’s Whispernet and Whispersync facilities is a key selling point of Kindle. However, this applied only for US customers using Whispernet within the US – elsewhere a fee of $1.99 applied. This fee has since been reneged. Also, there is an email-based mechanism to convert documents to Amazon’s proprietary DRM-restricted format (AZW). To get the converted files directly to the Kindle, Amazon charged a fee of $0.15 per MB. The free alternative provided by Amazon is to get the converted files via email and then upload it to the device via USB or Wi-Fi.

Summary & Recommendation:

Undeniably, Kindle has matured, tending to several of our original concerns such as pricing, international usage, and ergonomics. It now sports features that alleviate concerns like readability compared to real paper, support for reading in dim light or darkness, support for the visually impaired, etc. However, Amazon is at sojourn on what we regard as core functionality for Kindle, without which, it will not be considered evolved:

1. Developing a used eBook marketplace,
2. Allowing lending of books - this feature was announced on 04/20/2011 although they did not give a time frame, and
3. Accelerating the availability of Titles.

While it is understandable that, negotiating with publishers to arrive at a market viable deal is a monumental task in itself, it is not a justification for disregarding these features. The only respite is that the competition is even further behind in almost all of these aspects, though some like B&N’s Nook allow lending of books for short durations.

Overall, we recommend the purchase of the Kindle. Pricing has settled well, title availability is improving, and the odds of Amazon releasing in the near future, a vastly improved version, consequently causing buyer remorse has diminished. Kindle WiFi is the Best Value, unless extensive travel is involved. If so, the better option is the Kindle WiFi+3G version for $50 more. With the product maturing fast, it is highly likely that Amazon will decelerate the pace of new versions and/or feature-sets in future releases. Further, most of the features that Kindle currently lacks can be incorporated without being tied to a particular hardware version. Hence, it is probable that such features will get released with backward compatibility built-in.

Related Posts:

1. Best Values in eReaders - A Comparative Review.
2. Kindle eReaders - A Comparative Review.
3. Kindle 2 eBook Reader - Is it Bleeding Edge? - A Frugal Take.

Last Updated: 05/2011.

Home Improvement - Our Experience

Home Improvement was not a choice for us as we purchased a fixer upper. Below is a look at the home improvement projects we did after purchasing a 17-year old Bay Farm Area property in 2004 in the Bay Area in Northern California:

1. Windows and Sliding Doors – Double-pane windows became a household name in the residential space only in the late 80s. Our house constructed in that era had double pane windows only for the living room. Acrylic frames made their debut much later. Today’s acrylic double pane windows and doors provide better noise protection, energy savings, and improved looks. The windows, sliding doors, kitchen bay window, and the exterior painting/maintenance were done together as a package. The windows averaged $250 while the sliding doors and kitchen bay window were in the $1800 vicinity. Contemporary colors were chosen for exterior painting. The return on this investment on this home improvement project was immediate - it gave the house a much-needed face lift.

When upgrading windows and sliding doors, contractors promote the option to replace the seating for the frames as well. This involves additional labor and certain counties require construction permits. Only very old places encounter the possibility of the seating getting completely rusted out. Unless that is the case our recommendation would be to bypass this option, as it would be harder to recoup the additional home improvement cost.

2. Kitchen – Kitchen remodeling is one area people tend to break the bank. The industry experts have largely blind-sided the public here by constantly hyping this as a proven home improvement area, where one cannot but recoup their investment with dividends.

From our experience this holds true only if done prudently. Our home improvement efforts were centered on crafting a contemporary appeal by eliminating the enclosed, small-room design from yesteryears. This involved:

• Relocating the bulky cabinets to the garage,
• Opening up one complete wall and part of another one,
• Expanding into the family area a wee bit to build a nook area with a low pony wall,
• Installing new cabinets along with granite counter-tops
• Doing the back-splash and the floor tiles in a diamond pattern for an illusion of volume.

Lesser wall space meant lesser cabinets, which lent a slick finish. By not sending to landfill the existing cabinets, our storage needs were greatly met thereby keeping costs down. The one area we splurged on was on fancier back-splash tiles.

Research on kitchen remodeling will show similar kitchens costing upwards of $60K to modernize. We were firmly committed to NOT expanding the square footage of the house to accommodate a bigger kitchen. That one decision saved us a lot, as expanding square footage inevitably comes with its huge baggage of labor, material, and permit related costs. Overall, we consider this home improvement a good value for money, unless you go overboard.

3. Floors – Being veterans of all flooring options – carpet, tile, stone, laminate, and wood, we strongly advocate something other than carpets. Carpets amass dust and other things underneath them over time rendering useless all kinds of cleaning including professional jobs. Periodical replacement is the only real solution. Stone and certain types of tile tend to be more expensive and they are not exactly feet friendly. Nonetheless once installed, they are a very low maintenance choice providing better protection from the elements (moisture, termite, etc.). Wood or the modern equivalent Engineered Wood is greatly preferred if budget allows, though moisture is not held at bay. Laminate is a good middle-ground alternative although not as durable as tiles or wood. Our house had the original standard carpeting for the most part (including bathrooms), while the entryway, the wet-bar area, and the kitchen had the standard half-inch tiles. The yellowed, spotted carpets paved the decision to replace the entire flooring as part of our home improvement project. We laid Pergo laminate flooring for most of house, black granite for entryways and other areas, and large (2”) tiles in diamond-pattern for the kitchens and bathrooms. Diamond pattern along with design work for the corners are both labor-intensive and consumes more tiles but greatly enhances the overall look as the pattern gives a larger feel to the space.

With flooring be cognizant of the following:

• When replacing tile floors choosing to lay them atop the existing tiles involves less labor and associated dust/cleanup.
• Baseboard skirting that attaches to the wall comes in a variety of shapes and forms with each type intended for a particular spot. It is easy to unknowingly use the wrong type.
• As laminate or wood flooring has to float on its backing there has to be a gap between the floor and the wall, wood frames, skirting, etc. Else wood expansions and contractions brought about by climatic changes can cause the floor to quickly warp.

4. Lighting – The norm for the majority of the houses in the US is to have no lighting in place for nearly all rooms except the bathrooms and the kitchen. The logic behind this approach is that it provides the owners an opportunity to furnish the place with chandeliers and other ornate lighting options of their choice. In fact the lamp and shade industry has capitalized on this trend by pushing the wonderful mood setting effects of lamps. The downside is that such items take up space, collect dust and promote a heavy and dated look to the house. The contemporary approach is to go for recessed lighting with dimmer capabilities and use sleek fixtures when absolutely necessary. Our house was similar to the rest of the US with some patched up lighting in one bedroom and the wet-bar area. We went for the most economical standard 5” recessed lighting wherever possible and employed track lights and fixtures on other parts keeping the costs for this home improvement project below $5K. The possibilities to top this figure are endless as home improvement options abound for recessed lighting with increasing cost.

This is one area where it is vital to use an electrical contractor as opposed to a general contractor who claims to be the Jack-of-all-trades - it is easy to complicate the circuitry that can cost an arm and a leg later on.

5. Garage – Unless opting for a finished one with a new house, garages come with just the framework in place. The good news is that it is relatively easy to finish, insulate, add an attic if there is a high enough ceiling, etc. A garage is also the holdall for stuff so save for the ultra-efficient, clutter free folks, this is a required home improvement upgrade. We did all this and moved the original kitchen cabinets as well for a combined cost of around $2.5K including labor - overall, the best value for money, as far as home improvement projects go.

Purchasing cabinetry to install in the garage can significantly add to the cost of this upgrade. It can also be taken one step further and have half of it transformed to an office with flooring also in place.

6. Painting – A fresh coat of paint breathes a new life to any house. It is very common to go with the single off-white color for the entire house. Also, if wood trims and/or cabinets are left untouched, simple takes on a new meaning for there will be little or no sanding involved. On our part, we opted to go color for both the walls and the built-in oak cabinetry – the oak cabinetry gave a vintage look to the whole house. Choosing colors were not straightforward for us and we turned to a professional color consultant (~$150/hr) after repeated trips to Home Depot and other paint shops – there are umpteen different shades of the same basic color, which can have different impact depending on the surroundings. Also, the different brands have products that differ in appearance (Regal Wall Satin vs Super Satin for example) and quality to further confuse the issue. The consultant’s recommendation had a total of almost twenty colors of Benjamin Moore paints (not to be confused with another brand Kelly Moore) although many appeared to be minor variations of each other. He also offered the services of his paint crew for between $6K and $8K. We opted to don the mantle of painters and have to say the results were more than satisfactory – it took us around a month to finish the house (2-3 hours average per day). The cabinetry was the hardest as it required sanding and used oil paint. The material costs added up to a little over $1K, making it a relatively economical home improvement option.

Related Posts:

1. Flipping Houses in the Bay Area - An Experience.
2. Bay Area Home Buying - A Bubble Period Experience.
3. Home Ownership Experience in the Bay Area - Lessons Learned.
4. First Time Home Buyer - Builder Upgrades vs Upgrading on Your Own - An Analysis.
5. Home Improvement - Our Experience.
6. Home Owner Loans - Playing the Mortgage Game.
7. Mortgage Refinancing - Our Experience.
8. Mortgage Refinancing Decision - How to?
9. Home Ownership - A Peek at Periodic Costs.
10. Home Maintenance Schedule - A Primer with a Focus on Costs.

Last Updated: 11/2010.

First Time Home Buyer – Builder Upgrades vs Upgrading on your own – an analysis

The biggest perk on purchasing a newly constructed home is the opportunity to acquire most upgrades at turnkey with negligible waste. Nearly all home builders offer value added packages that allows the homeowner to choose additional/upgrade options for a fixed cost. The snag though is that a first time home buyer may not be savvy enough to recognize the right upgrades that are the selling points of a house. As a first time home buyer, the tendency is to make a beeline for the standard setup in their attempt to buy the biggest plan affordable. There are many negatives to this approach:

Choosing from the upgrades offered by the builder is almost always cost-efficient compared to improving after handover – improvements after the house is tendered essentially translates to

• Junking the standard offering thereby losing the entire value of the item,
• Scoping the work involved,
• Ironing out the permits required if any,
• Labor costs associated with dismantling, cleanup, and re-installation,
• Increasing carbon footprint.
• Having to finance the improvement. When you choose upgrades from the builder, the cost gets added to your mortgage transparently - this is a boon for many a cash strapped first time home buyer.
  

It is not everyone’s cup of tea to handle home improvements while occupying the same house as it inevitably involves

• Personnel inside the house for a prolonged period of time.
• Dust is a given and could be a deterrent for those with health problems.

Other problems with this approach include:

• Renting while upgrading is a significant additional cost.
• Some options such as adding recessed lighting where crawl space is limited could prove prohibitively expensive after handover as significant labor is involved to work around the limitations.
• Even for peripheral items such as the garage, yard, and window furnishings going with the builder option if at all possible is recommended.

On our part, we became a first time home buyer when we purchased a new home in Alameda in 2003. It had about 30K worth of upgrades. We realized almost immediately our upgrades were conservative at best: we should have added recessed lighting throughout, upgraded the stairways and the upstairs carpet to name a few. Ultimately, we decided to largely live with what we got, except for doing the yard and window dressings. When the house was in the market in early 2004, a similar house with nary an upgrade was also listed – we were pleased when our house sold first at a significant premium over the other house, thereby justifying the value of the upgrades.

Not everyone is on the quest for a brand new home and the condition of the houses generally reflects the market sentiment. In a buyer’s market, the owners usually do a makeover for the listing to standout and attract the interest of the buyer. In a seller’s market, seller motivation is non-existent and the houses sorely reflect that. Even homes cited as “ready-to-move-in” might require significant time and effort before it becomes “livable”, as personal tastes are unique and can be all over the map. Our next article will look into home improvement options.

Related Posts:

1. Flipping Houses in the Bay Area - An Experience.
2. Bay Area Home Buying - A Bubble Period Experience.
3. Home Ownership Experience in the Bay Area - Lessons Learned.
4. First Time Home Buyer - Builder Upgrades vs Upgrading on Your Own - An Analysis.
5. Home Improvement - Our Experience.
6. Home Owner Loans - Playing the Mortgage Game.
7. Mortgage Refinancing - Our Experience.
8. Mortgage Refinancing Decision - How to?
9. Home Ownership - A Peek at Periodic Costs.
10. Home Maintenance Schedule - A Primer with a Focus on Costs.

Last Updated: 06/2011.