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Old 01-10-2008, 03:44 AM   #10
dhbailey
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I would also add here that Amazon may be taking a loss on many of the books it's selling below Sony prices, in an effort to drive more people to buy the Kindle. It's as old as the hills, this business practice of taking small losses to entice customers to your brand and hopefully to lure them away from the competition in the hope that the competition will die out and you'll be left owning the whole field. Then you can raise the prices back up even higher than the competition had them and make much more profit than you lost in the first place.

Amazon has been a proven leader in recent years in the ability to sustain year after year of operating losses and still attract venture capital to keep itself going and grow and eventually turn a profit. So Jeff Bezos is no stranger to the concept of losing money to attract customers.

And while the leap from $1.75 to $3.38 may mathematically be "almost double" the price increase is only $1.63, hardly enough to break your bank account. And how much are the paper books? You're still ahead of the game, even if you stick with the Sony books.

As for "trusting Sony" the only advice I have for you is, never trust any corporation, period. They only have a loyalty to their shareholders these days, never to the customers. Always approach any corporation (including Amazon and the Kindle) knowing that they don't give a s#*t about you and won't include your best interests in any decision they make. Unless you own stock and have enough shares that your vote actually counts for something at the annual shareholders' meeting!
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