Thread: B&N to Evaluate Strategic Alternatives-Sale of Company?
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Old 08-04-2010, 07:15 PM   #41
Alisa
Gadget Geek
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Quote:
Originally Posted by Logseman View Post
Maybe I'm overthinking it, but if B&N starts to waver after putting their hardware in a similar price level, it would be very surprising that Amazon is making any profits from a device which uses, e.g, a new screen technology whose R&D needs to be paid off.

If B&N struggles with a price point of $149 for its device and Amazon makes a profit with $139, why did B&N come to the price war in the first place? I think B and N would have known if Amazon was making a profit or not. I'd say B&N knew that Amazon was breaking even at that point, and they made a bold step they didn't imagine Amazon could counter.
The nook has a second screen and has also just come out of development. Amazon had a lot more time to recoup is development costs. Also, there's volume to consider.
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