In discussing Amazon's Kindle I think I've echoed the sentiments of most bloggers in that I found it interesting but entirely too expensive.  Given how expensive it is I just didn't see success in its future particularly while it matches the iPhone in price.

So Imagine my surprise at reading this (via ABCNews.com)...

Amazon amzn launched the paperback-size gadget to considerable fanfare last November. But prospective buyers who click on the Kindle links at the top of Amazon's home page are informed that due to heavy demand the product is "temporarily sold out."

...

"We can't go into details about exact wait times," says Amazon vice president for digital products Ian Freed, conceding that the company underestimated demand. "We've had to ramp up manufacturing pretty significantly, and ramping up a manufacturing takes a little time." Amazon's Senior Vice President Steven Kessel told a group of publishers recently that Amazon's focus is "on getting back in stock" with Kindles.

...

Judging from online discussion groups, the Kindle wait time seems to be about four to six weeks. It took a month before Sacramento-based digital library consultant Kris Ogilvie got hers.

Of Course, there is one catch...

The company takes Kindle orders on a first-come, first-served basis. But the online retailer won't reveal how many have been sold or when supply will catch up with demand.

So we don't know exactly what this means.  If Amazon was hedging its bets on the Kindle a sellout would still equate to very few sales. 

But this is a good sign for Amazon and it means we probably won't see a price drop anytime soon.  I wonder where the disconnect is between what I (and most bloggers) thought and what consumers actually did.  The best I can come up with is that a society of book lovers exists and they're willing to spend money on book paraphernalia.  Amazon would know that audience better than anyone and could have tailored Kindle to them. 

These are probably people who don't even know what the word blog means but who, because of their love of books, are avid Amazon visitors who have a lot of trust in the brand.  When they saw an e-book reader made by Amazon their trust was enough to justify the cost. 

This could end up being a coup for Amazon if they play their cards right.  They can milk the die hard buyers for $399 and then release an updated version (perhaps one actually worth the $399) while dropping the current Kindle down to a more reasonable price.  By doing that Amazon could become the Apple of the e-book revolution.  A very profitable place to be if e-books take off. 

I doubt e-books will ever be as successful as digital music...but then again...I didn't think the Kindle would sell out either so what do I know?