Everybody's talking about Amazon retaliating against the iPad with a multitouch, multimedia, app-heavy Kindle 3. But it's not as obvious a move as you think. In fact, it's a bad idea.
As I pointed out yesterday, Amazon is going to do well by the iPad—and plenty of other platforms—as long as they keep their software developers pumped up on smart water and amphetamines. Why does anyone build their own hardware, but out of fear of getting shut out by the competition? Lord knows Apple can be a bunch of dicks, but it's letting Amazon grow, even while it launches its own competing book platform. So should Amazon focus on software and content for everyone, or spend millions to build its own competing proprietary hardware? You know my answer; here's why I'm right: