The bigger question is how Jeff Bezos can scale this beyond the Kindle device. Even though he has found a niche hardware business that is probably profitable it doesn’t scale to 100s of millions of people.  Beyond the tech savvy affluent few, not many people are going to be shelling out $350 on a device with a singular purpose. Especially when you can get a netbook for roughly the same price.

The Kindle has become the Wii of Christmas 2008. The Kindle ranks #4 on Amazon’s most popular list. Back in August TechCrunch estimated that Amazon had sold over 240K Kindles. Amazon is certainly well on its way to sell over a 1 million Kindles. The Kindle “frenzy” has alreay taken to eBay and Craigslist where people are trying to get up to $1K for this little device.