Quote:
Originally Posted by Andrew H.
Good post. But the 30% is *revenue,* not profit.
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True but the costs on Kindle books are inherently lower than their competitors because they own the tech and the infrastructure. For example, no Adobe tax. So, in a fixed-price environment they get to keep more money than the opposition. Giving anything close to 30% to a company geared to prosper at 5% is not the wisest move the BPHs could've made.
As pointed out, before the Price Fix, hardware prices were competitive and everybody was rushing to get in the business. Post fix, Nook and Kindle operate at a different level from the hardware-only vendors and pretty much all the no-names are moving to LCD android tablets instead. Coincidence?
