Originally Posted by HarryT
On reason is that Amazon subsidise best-sellers as a "loss-leader" for the Kindle - there are even claims that some are sold at a loss to Amazon. Opening up the store would increase prices, unless they were to have a "two-tier" pricing structure, a lower price for the Kindle, and a higher one for everyone else.
I realize that there is some subsidization going on at Amazon, but I'm not sure it's to prop up Kindle sales. If the iPhone/iTouch owner can also view Amazon eBooks, at the same price, then it doesn't exactly make sense. They are somewhat in competition with Kindle sales. I think more likely, Amazon is subsidizing the eBook format in general, to get people to convert over. Yes, that might eventually sell a Kindle to you, if you had enough books, and got tired of trying to read them on an iPhone/iTouch. What would actually persuade me more quickly would be if the Kindle books were readable on a PC (ala iTunes music). That might get me to critical mass, a Kindle is something I'll buy when I have enough books, but the format problems with PDFs, too-restrictive DRM, and so forth cause me to hesitate. But I don't think the model at Amazon, and no question there are some smart folks there, is to dominate eBook readers. More likely they're looking to dominate eBooks. The eBook readers will get pounded down to the cost of a text-book or two, before we know it. Kindle will follow the same exact model as the PC, first introducted (Monochrome, small screen, etc.).