I agree with Michael Arrington. Why is Amazon controlling the production of the Kindle? Why not license the technology, provide the digital content for Kindle devices, and let Asian tech manufacturers innovate on a wide range of Kindle devices.

Does Amazon really want to be in the hardware business? Their whole interest here is selling as many digital books as possible. Plus, if Amazon were to give up control of the device’s form factor, maybe we’d get some innovative tech company interested in designing a sleek Kindle that looks and feels as sexy as the Sony Reader or even a MacBook.

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Okay. I’m joking, of course. Plastic Logic is a separate company in no way associated with Amazon – yet. But, they did display a new eReader device with a form factor that Bezos’ design team should be studying intently for the second generation Kindle. Lots of people are writing about Plastic Logic’s demo – here, here and here.

Currently, you can read the New York Times, and many other newspapers and magazines on the Amazon Kindle. But, would you rather read the morning’s New York Times on an airplane or your morning train ride on the cramped Kindle screen or Plastic Logic’s large screen? Plastic Logic’s eReader more closely resembles the typical size of a magazine page vs. the Kindle’s paperback book size.

As much as I love Plastic Logic’s large form factor, I seriously doubt they’ll achieve long-term success, unless Jeff Bezos is on line 1 to discuss a partnership or acquisition. Why so negative?

What’s their content strategy? – Joe Wikert beat me to this argument. But, I want to echo what he said.

I spent some time this morning perusing Plastic Logic’s website and management profiles. Plastic Logic has a huge amount of talent – technology talent. I didn’t see any manager with high profile, deep experience cutting deals with book publishers and other content companies – magazines, etc.

From the Plastic Logic demo, it appears that the company is aiming their reader squarely at the enterprise market. Why limit the device to corporate documents, newspapers, and other business content? Once again, consumers and business people will be forced into a device with a narrow focus.

Unless Plastic Logic execs are hard at work in New York City cutting deals with numerous book publishers to get thousands of front list and backlist novels and non-fiction book, ereader fans are going to face a frustrating choice. They’re going to have to shove their Kindle and their Plastic Logic devices into their briefcase for a flight. After they read their latest sales documents on their Plastic Logic (on a beautiful, large screen), they’ll have to dig out their Kindle to read a science fiction or mystery novel published four or five years ago.

I love the Plastic Logic’s form factor, but I’m seriously concerned about their content strategy. Launching with a few thousand bestselling novels and non-fiction books is just not going to be compelling, especially with 140,000+ books available on the Kindle.

I’m looking forward to seeing what Amazon has up their sleeve for the second generation Kindle, and I think I hear a phone ringing at Plastic Logic’s corporate offices.

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I’m actually surprised at those numbers. Sure, Amazon has done a pretty good job of marketing the Kindle. And Amazon has an advantage that any online marketer would kill for – the Amazon home page – front and center and above the fold.

I don’t have a Kindle, but I’ve played around with one my friend has. I’m not wild about eInk. I have a first-gen Sony Reader. My biggest complaint about eInk is that I can’t read the darn thing in bed without fiddling around with an awkward book light. That’s why I continue to use my old Gemstar eBook. The Gemstar eBook is still around thanks to the guys at Fictionwise. It’s now called the eBookwise – 1150, but except for a few minor tweaks it’s the same as my Gemstar.

The Kindle’s true killer app is the built-in Sprint wireless connection. If you hear or read about a book you’re interested, the eBook is only one click away on your Kindle (provided of course that the Kindle eBook version is available).

However, I will be very interested to see where the prices for Kindle books end up. Right now, most new hardcover titles are available on your Kindle for $9.99. And, for many of those titles, Amazon is selling them for a loss. How happy will Kindle owners be when those prices start going up?

Frankly, eBook pricing just doesn’t make sense. The pricing is based on a physical book, and it’s a price based on buying paper, ink, printing, cover art for a physical book. When distributing an eBook costs pennies (or less than a penny) how does that antiquated pricing make sense?

And, given the lower distribution cost of selling a digital eBook, why don’t publishers lower the prices for eBooks, sell more books, and make more money in volume. That’s certainly the model that worked for Wal-Mart – lower prices and make money on volume.

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