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My guess is they're trying to get as many people into the Kindle right now as they can because the biggest money-maker for them is probably periodicals and blogs. The blogs are cheap but you bet they're probably almost all profit. The only value-add they have for this stuff is the convenience of automatic delivery which hinges on their Whispernet. The books are probably not making much money at all. In fact many of the most popular titles are likely being sold at a loss.
I'm hoping once they feel the Kindle has a strong hold, they'll try to get people that just aren't going to buy the Kindle by offering books (probably for a higher price) to non-Kindle-owners. I'm guessing we may not see this until they get to the point they can drop the price on the Kindle hardware. This is all pure speculation on my part, though.
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