Amazon unveils magazine-sized Kindle DX

Amazon has unveiled a bigger Kindle reader that is about the size of a standard sheet of letter paper. Costing $495, the new device seems geared more to magazines and newspapers and may raise some hopes among publishers.

According to a Wall Street Journal article, the Kindle DX device -- which, only being black-and-white, may suit newspapers quicker than most colour-rich magazines -- costs about $130 more than the Kindle 2 and Amazon CEO Jeff Bezos says the company couldn't set a lower price because it is a has significant computer power and is very expensive to manufacture.

He also pointed out that Kindle owners don't have to pay for wireless service that let's them dowload materials, unlike iPhone users, who have to commit to a two-year service contract.

However, the Kindle's wide adoption for magazine readers will be an open question until the price comes down. The device isn't available to Canadian magazines and magazine readers and it's not known when it might be. The launch is really testing the U.S. market to see if there's an appetite for such a thing.

The WSJ story quotes analyst Michael Norris of media research firm Simba saying he feels the device is overpriced.

"It just doesn't do a heck of a lot more than the Kindle 2 other than boast a larger screen," he said. "The iPhone is nearly limitless in terms of applications. The Kindle has far more restrictions."

Kindle takes aim at magazines, newspapers (Fortune)