Originally Posted by phil75070
In many cases, it isn't about the base product, it is about the consumables tied to it. Money is made on the sale of razor blades, not razors. Little if any profit is made on cell phones by the carriers. Their money is made on the monthly charges and other fees. With the Kindle, the real money (profit) is made on the books that are bought to be read on it.
I don't believe any of these eReaders, Sony, Nook, Kindle, etc., are really that profitable, falling more in the category of loss leaders. If that is truly the case, a device made by a 3rd party that has no ties to any revenue from consumables, the books, would have to be stand-alone profitable, perhaps making it uncompetitive in the marketplace.
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