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That's an interesting point.
I have a feeling that Amazon has to look at the bigger picture. They know that people who already have Kindle 3s won't get the adKindle. They won't sell to their full potential regardless of the price.
They may be saving the $99 price point (or lower) for a new-version-to-come or something.
I know it's a bit stupid saying "amazon knows amazon knows" all the time. But I really think that the $114 price is very strategic and thought out. They may have done a survey of sorts.
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