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Originally Posted by foreverjuly
Interesting article. I was glad to read the breakdown on what the cost of production was. $99 will certainly be a loss that will hopefully be made up through increased book sales. It makes me wonder though, what is going to be the factor that creates the floor? Would all these companies settle on $99 or eventually go even lower? Other than just plain production and marketing costs, there might not be anything holding them back other than the perception that an e-reader too cheap must be shoddy. Certainly someone will go for that crown as well.
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My guess would be that the $80-$150 range will be the floor for brand name ereaders. Similarly to the way brand name MP3 players don't go much below that and are considered commodities. You will see the cheap, Chinese junk ereaders for less, possibly for as little as $30-$50, maybe in a year or two, but I doubt the name brands will go that low. Just my 2 cents of course. . .