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Originally Posted by Kali Yuga
Who is this "we?" As far as I can tell, not a lot of people believe Amazon is making huge profits off the hardware right now.
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Kinda missed the point, there. I guess I shouldn't have attempted humor.
I WAS saying the $139 price is below their cost (and they are making up the losses in ebook sales).
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... I'm fairly confident that Amazon's costs did not fall by 50% in the last 3 months....
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I never said Amazon's costs EVER fell by ANY amount. I merely suggested that they probably already knew they were considering dropping the prices, and a 20% discount wouldn't have been unreasonable with that in view -- even tho no one else knew it was in the works.
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You also don't buy 2,000 Kindles at a single time.
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No, I don't. But if as an individual unit buyer I find 10% a worthless discount, then as a large-quantity purchaser I would find it insulting, and really don't see how the sale was ever agreed to, except that like all public officials, they are only spending tax dollars, so its not costing anything to begin with.
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If they saved $15 off of each one, that's a $30,000 discount off the order. I'd say that's pretty significant.
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On the other hand, using that figure, you assume a retail cost of $150 per unit and I would consider a remaining balance of $270,000 a lot MORE significant.
I'm just saying Amazon would have looked better giving a better discount in light of the probability that Amazon knew the price would be dropping soon.