Kindle 2 International and actual UK vs U.S. book pricing - Update

UPDATE - Oct 12 - Australia's The Age just copied The Guardian story without checking Amazon's Australia country-info on product page for the International Kindle.
  The Age and other repeating-newspapers claim it's $13.99 for books in Australia and a 40% increase while the product page says $11.99 unless marked otherwise.  Whatever happened to first-level fact checking?
  Meanwhile MediaBistro understandably picked it up and reports that "Jeremy Fisher, executive director of the 3,000-member Society, thinks Australian writers should avoid the Kindle for these pricey reasons."

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Main blog entry from Oct. 10
Well, a column by writer Bobbie Johnson that I briefly referenced yesterday for citing an unreasonably-high pricing calculation for the cost of providing a book for UK residents via 'roaming' mechanisms (at the same time that a sibling Guardian-column quoted an Amazon spokesperson saying there would be "no" roaming fees for UK residents in the UK) was updated by Johnson to report that, per a conversation he had with an Amazon rep, Amazon "confirmed" they will be charging a "premium" for UK residents and then he linked us to another column of his that said "International Buyers to be charged 40% more per book" than U.S. customers are - an alarmist column that did anger readers who believed it.

  I bring this up because today Twitter is alive with 'tweets' about other newspapers picking it up, one after the other, and just repeating it as fact.  That's nothing new but it's unnecessary and definitely misleading.

  Ironically, that was an update to a column in which Johnson originally opined that American customers were subsidizing the UK customers' higher costs for Amazon.

  Johnson cited the one UK price of $13.99 despite the Amazon product page for the UK Kindle specifically saying, from the announcement day:

' Free Wireless: ... No monthly fees, service plans, or hunting for Wi-Fi hotspots.  For non-U.S. customers, there are also no additional charges for wireless delivery in or outside your home country...

  Low Book Prices: New York Times® Best Sellers and New Releases are $11.99 to $13.99 (prices include VAT), unless marked otherwise. You'll also find many books for less - over 70,000 titles are priced under $5.99. '

First, Value Added Tax charged by Great Britain is *included* in the book price.  That's not an Amazon premium charge.
  As of January the VAT will be nearly 17% over the cost of the book.
And the base price of the range is $11.99, not $13.99. In the U.S. bestsellers are $9.99 and up.

So, no, it's not generally 40% over the cost in the U.S.  Even at the $13.99 range, U.S. Kindle owners are aware some bestsellers are not selling for only $9.99, too often going for as much as $15  And, again, the int'l pricing includes the government's value-added tax and is not a charge for the book. (Edited per correction by Jim.)

However, the UK will not have the experimental web browser, which some of us value having.  And I guess they won't have it unless or until the wireless-provider pricing is low enough in affected countries to cover the cost of that as Sprint does here in the U.S.   Countries which WILL have the web-browser enabled are Mexico, Hong Kong, and Tokyo.

For added irony, Johnson linked us to another Guardian article, this one by Charles Arthur, who spoke with Amazon's SVP in charge of the Kindle, Stephen Kessel, who reiterated Amazon's policy (I quoted this yesterday) that UK residents won't be paying roaming charges at home nor in the U.S.  This was why Johnson's first focus was that it seemed to him that U.S. residents would be subsidizing UK Kindle users.

  The problem for those in the UK is that they can buy books for now only from the U.S. Amazon store.  This means a possible import/customs fee -- these don't apply to hard-cover books but somehow appear to be in the mix for e-books (which the government can change).  However, those also are not Amazon book charges.  But prospective buyers will need to factor that in.

So, as this 40% added Amazon-charge for UK customers rumor percolates around the globe, maybe some will know it's not true, even if repeated by 50 newpapers and online sites.

  The basic price difference in the bestseller price-range for both U.S. and U.K. is 17% - near the cost of the Value Added Tax charged over there.   And here are additions from knowledgeable people commenting to the article.

===
"Pricing sounds quite logical, VAT will be 15% or 17.5% from 1 January which does explain part of the price differential vs. a print book. Why is this?
Surely the EU should be promoting E-books from a green perspective and allow no VAT like the paper format?

It would also make sense that from a scale perspective that costs in the other countries will be more than the US where there is a bigger market."
  [ by jimbob70 ]

_______
"On the pricing thing. A lot of it has to do with UK publishers charging higher list price for their ebooks than US publishers.

For example Audrey Niffenegger's new book Her Fearful Symmetry...

US list price $26.99 (approx 17.02)
UK list price 21.84 (approx $34.63) "
  [ by BrianEb ]

_______

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Kindle 2 International - Follow-up news 10-09-09 - Update

Follow-up news on the Kindle 2  International after the big splash on Tuesday.

Mildly updated the "kindlecountries" file of country-specific Kindle information formatted from the Amazon page to include the news/rumors in New Zealand and Canada.

NEW ZEALAND
Kindle may yet come to New Zealand per New Zealand PC World's James Heffield.

Vodaphone's Paul Brislen says that Vodaphone is in "deep discussions" with Amazon to bring the K2i to New Zealand. However, he wouldn't speculate on how likely a deal with Amazon is or when it might happen and wasn't sure whether other telecommuications providers were also in negotiation with Amazon.

Telecom spokesperson Rebecca Earl was non-commital about ANYthing, confirming nothing but saying the company could "see the appeal of the Kindle" and was exploring options for "a device of this type."


AMAZON IN NEGOTATIONS WITH 3 CANADIAN COMPANIES?
The Globe & Mail reports that Amazon has 3 possible partners in Canada now while Amazon is shopping around for the best deal on the cost of providing Kindle owners wireless capability there.

If the problem lay with the inability to find a wireless carrier at a doable price, Amazon could have offered Canada the same non-wireless option it offered other countries, but someone in the know says it's a matter of time and deciding which company will handle it.
Rogers, an AT&T partner, had seemed the only source (maybe causing it to keep its pricing higher?) but Bell and Telus are going live with their next generation network earlier than expected, in November, which has implications for the holiday season.
The article ends with yet another report that a Canadian Kindle user reported to the newspaper that he has been able, in the last month, to download wirelessly in Canada.


UK/EUROPEAN MOBILE PROVIDERS DESCRIBED AS SURPRISED BY KINDLE INT'L
According to Mobil Phone News's Luke McKinney, Vodafone and O2 are "in charge of wireless signals" in the UK but they seem to have been caught off guard, judging from their press releases, by Amazon's latest news. McKinney feels it's "especially odd considering Amazon’s previous statement that they couldn’t unleash their equipment in the UK until extensive negotiations with telecoms companies were complete."

He writes that UK mobile service is "notoriously provincial" with "various networks having hotspots and not-spots."


THE GUARDIAN (UK) ON ROAMING CHARGES PAID BY VISITING AMERICANS
The writer asks why Amazon UK didn't launch it -- I think it's because they don't have the serving technology, Kindle billing and Kindle customer service support setup there yet. But the article references another Guardian article in which Amazon SVP Stephen Kessel spoke with the Guardian writer and mentioned the Kindle Int'l is not shipping until after the Frankfurt Book Fair, where publishers work their deals). I'm not sure how that relates to the question.

But the import tax situation then for UK residents is not attractive. The UK Value-Added Taxes are included in the cost of the books there.

Kessel did say, ""In the future we plan to introduce a UK-centric experience to allow people in Britain to purchase Kindle and Kindle books," Kessel said."

In connection with the puzzlement of UK wireless providers, The Guardian adds:

' Another mystifying question: which mobile network is Amazon going to use? AT&T, its partner in the US, doesn't have a presence in the UK. So who is Amazon's UK mobile network? Its earlier statements this morning were models of non-clarity:

"Kindle with international wireless uses advanced 3G GSM technology to power Amazon's wireless delivery system 'Whispernet' over the AT&T Global Network."

Could Kessel elucidate? Is Amazon going to be a mobile virtual network operator in the UK, like Virgin, renting airtime from the main four networks (O2, Orange, Vodafone and 3)?

"AT&T is through their network of partnerships providing 3G network coverage to Kindle and Whispernet across 100 countries." Er, OK, so which network in the UK? "You'd have to ask AT&T." We intend to. But he said that there will be no "roaming" charges; if you're a UK Kindle buyer you won't get any charges using it in the UK from a mobile network. What about a UK Kindle owner in the US - would they see roaming charges? "You pay no roaming charges."

[ What ? ]

Then there's the final question, relating to books and publication rights, which has exercised publishers and authors and agents. You'll know that some books are published in some countries, but not in others. These are often the subject of big rights bids.
. . .
Even so, we've heard that if you subscribe to UK papers on a Kindle in the UK that you may not be able to get images downloaded (there might be copyright issues). We're seeking confirmation on that. '

The commenters to that article are not overenthused about e-readers in general.

Returning to the article about "Roaming Charges paid by Americans" - that takes official customer-rates for 'roaming' rates to a situation in which the wireless will be provided by partners who are right there in the UK and comes up with an unreasonably high figure for costs there as a result, and even U.S's Sprint is said to charge relatively little to Amazon for unused bandwidth relative to what they'd charge individual customers.

Every article referenced from the Guardian has wholly different points of view on this.


FUN MUSINGS by JIM CRAMER on AMAZON
This is Cramer's intro to a story for which have to sign up to read it in full, which I didn't.  Since it's used as a lead and lure for a 14-day trial, I'll expand the possible audience here.  Cramer writes:

' Do you know that Amazon is closing in on its all-time high? Do you know that what was once considered the most overvalued stock in the world is now starting to be viewed as cheap, even as it goes higher, because of the tremendous scale it is reaching and the company's effort to drive down product pricing?

When I heard about still one more price cut for the Kindle, it dawned on me. Amazon is Ford, and Jeff Bezos is Henry Ford, without the cranky anti-Semitism and braggadocio demeanor, although I never heard Ford laugh, so I don't know if they have that in common. Ford decided to make cars for the masses, and with it, he broke down the price barriers and grabbed market share and mind share and scale, making it so that his company was so rich that he could afford to pay... '

OFF-TOPIC, BUT INTERESTING BEZOS/GOOGLE STORY
'...Kara Swisher at All Things D has details from Ken Auletta’s upcoming book, “Googled: The End of the World as We Know It, says TechFlash.
  Among the juicy tidbits: Bezos invested $250,000 in then-startup Google in 1998 at 4 cents a share. The Amazon CEO told Auletta that he “just fell in love with” Google founders Larry Page and Sergey Brin at their first meeting in a Silicon Valley garage.  While it’s not clear what Bezos did with his piece of Google, Swisher notes that his stock would be worth $1.6 billion today. '

 Ouch!  The article also mentions Amazon's Google-search-challenger A9 which did not do well.  The A9 unit still provides the searches for its ecommerce sites.  The Amazon forums had no searches for the last 2 years but added a very fast, effective one last month.
  Jeff Bezos was an early investor in Twitter too.

KINDLE DX
Several articles quote Amazon as saying they'll make an international Kindle DX also, but how could they not ?  They say only that it'll be sometime next year. Below are ways to Share this post if you'd like others to see it.
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(Older posts have older Kindle model info. For latest models, see CURRENT KINDLES page. )
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Questions & feedback are welcome in the Comment areas (tho' spam is deleted). Thanks!