Quote:
Originally Posted by fjtorres
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?  |
Prior to agency, Amazon had 90% of the market and was trouncing all other providers because it was able to offer lower prices. Publishers pushed agency for just this reason - it would weaken Amazon because Amazon would no longer be able to compete on price.
Hardware prices don't have anything to do with the agency model: hardware prices started coming down when the Nook, specifically, undercut Amazon. Prices went down even more when Amazon responded to the iPad with the low cost K3.
Amazon and Nook do have the advantage that they can sell the hardware cheaply and profit from the books - but the agency model doesn't play a role here one way or another.