Quote:
Originally Posted by OtterBooks
You have good reason to suspect this (and I did as well), however in this case it is not so. The Kindle is not like a Playstation 3 (sold at 12% under cost) or other devices where revenue comes from content and licensing. The Kindle is sold at 48% profit, and Amazon makes practically nothing on ebooks. For a while Amazon was even taking a loss on ebooks, charging less than what they paid to the publisher, in order to keep prices from harming Kindle sales. Not sure if this has changed.
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Do you have a cite for that? It's inconsistent with *everything* else I've read on this.
Amazon did take a loss on the $9.99 NY Times bestsellers, but everyone seemed to believe that they made it up on the other books that they sold (and of course Amazon, unlike B&Ms, makes most of it's book profit on non-bestsellers).