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Old 02-26-2011, 12:04 PM   #28
Andrew H.
Grand Master of Flowers
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Posts: 2,201
Karma: 8389072
Join Date: Oct 2010
Location: Naptown
Device: Kindle PW, Kindle 3 (aka Keyboard), iPhone, iPad 3 (not for reading)
Quote:
Originally Posted by fjtorres View Post
On Price-fixed books, Amazon's take can run around $30 a year profit per reader. On a device selling for $139. 22% pure profit. And that's at just ten bestsellers per year. And just the first year. Over a three-five year lifespan you could easily see over 100% pure profit. Some buyers will bring in less, by avoiding the PriceFix books, but others will bring in more. Amazon, Kobo, and B&N can sell the hardware at just over cost and make plenty of money. Sony can't.
Good post. But the 30% is *revenue,* not profit.
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