MobileRead Forums - View Single Post - Ad-Supported Kindle?

fjtorres · 04-14-2011, 04:05 PM

The real magic number is zero-plus.
With the plus being a contract of some kind.
But manufacturing capacity just isn't there for Amazon to supply enough Kindles to make money at zero. Or $49. Or $99. The screens are the bottleneck.
As long as demand is matching supply at current prices they can't drop prices; why stoke demand you can't meet?

Again, KSO isn't about growing the Kindle install base as much as using Kindle to get into the online ad and digital coupon distribution businesses.
When Amazon makes its next push into the reader business (late summer, methinks) we'll know it. But KSO isn't it. Its just a side bet.

04-14-2011, 04:05 PM	#148
fjtorres Grand Sorcerer Posts: 11,732 Karma: 128354696 Join Date: May 2009 Location: 26 kly from Sgr A* Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000	The real magic number is zero-plus. With the plus being a contract of some kind. But manufacturing capacity just isn't there for Amazon to supply enough Kindles to make money at zero. Or $49. Or $99. The screens are the bottleneck. As long as demand is matching supply at current prices they can't drop prices; why stoke demand you can't meet? Again, KSO isn't about growing the Kindle install base as much as using Kindle to get into the online ad and digital coupon distribution businesses. When Amazon makes its next push into the reader business (late summer, methinks) we'll know it. But KSO isn't it. Its just a side bet.