Enough with the Apologies, Amazon, Stop Advertising The Kindle

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Tuesday - May 13, 2008

Timely analyst thought pieces on issues pertaining to digital media, home networks, and consumer electronics.

Enough with the Apologies, Amazon, Stop Advertising The Kindle
Author: Michael Wolf, Research Director, Digital Home
Thu, 20 Mar 2008 12:46:03 EDT

I found it humorous that Jeff Bezos had a front page apology for the inability to get Kindle's in everyone's hands. Meanwhile, they haven't stopped advertising the thing since it first shipped. I go to Amazon.com fairly frequently, and the Kindle has on the top of the site for the last few months. I guess I have to wonder if Amazon is taking a page out of Ninendo's book that scarcity and the story of scarcity creates demand and an all-around virtuous circle of buzz for your product and, well, more scarcity. I don't think Amazon is doing intentional shortages, but if they were so short-stocked, why oh why keep the Kindle in the most premium spot on the number one e-tailer's site all this time?

About the Wii. I know Nintendo has denied intentional shortages, but its getting harder to understand why they can't get a steady inventory of ready-to-go Wiis on store shelves one and a half years after the Wii first shipped. With the amount of contract manufacturing capacity that's out there in a slowing economy, the fact the box is the least complex of all the consoles and they have significant fab resources in IBM to make the Broadway CPU for the Wii, tells me either this company has a weak supply chain management capability or there is some component or two other than the CPU or GPU that can't be manufacturered to meet demand and they haven't been able to second source.

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