Quote:
Originally Posted by kjk
I think he's saying that the sales increases would be more impressive if they happened on their own
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Thanks for clarifying that.
Yes, without context, saying "We lowered our price and sales went up!" is the business equivalent of, "And in today's weather -- the sun rose in the east."
I suspect it's a temporary sales spike, spurred by fence sitters taking the plunge. If I'm right, sales will decline next quarter.
The other question, of course, is whether it's a sustainable price. Amazon is undoubtedly taking a loss on every sale, treating the Kindle much the way MS treats the X-Box -- as a loss-leader, hoping to make up the difference in game sales.
What's interesting is that, in Amazon's case, it also loses money on ebook sales (or at least did; with this new agency model scheme, I don't know), so I don't know where Bezios intends to make up the shortfall. Perhaps he's hoping to use Amazon's market clout to force pricing changes on the industry more friendly to Amazon.
--Nathanael