Quote:
Originally Posted by Melkor
Well I wouldn't like to buy eDGe for the cost of a netbook, but as I showed it is possible to buy a netbook & e-reader for half the European price of eDGe.
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Does that netbook have a touchscreen or just a basic LCD? Is that eInk screen 9.7" rather than 6"? Those are the two most expensive individual components of the eDGe and if the substitutes lack those specific features, then you've failed to make a fair apples-to-apples comparison.
Sorry that you feel like I'm calling you a "village idiot," but your posts are either not logically coherent and/or not consistent with basic microeconomic theory. Besides the errors that I've previously mentioned, there is another one: on the one hand, you claim that the eDGe features a unique combination of features, but then proceed to assume that its price should be subject to competitive market pressures... if it's truly a device with unique features, then by definition substitutes (or at least perfect substitutes) do not exist. In the absence of near-perfect substitutes, then enTourage operates as a pseudo-monopolist. According to neoclassical microeconomic theory, in a monopoly, economic profits are possible, but only because excess demand exists (i.e., an underprovision of the good). In other words, the excess demand (of which you are representative) is a natural consequence of the fact that the eDGe is a unique combination of features!
But I digress... the factors that make the eDGe more expensive in Europe are mostly outside of enTourage's control (unions, tax structure, etc). Because they can't sell the eDGe at a good price point, originally they weren't even planning on European distribution. When a number of people requested it, they contracted with CDW to sell it as an afterthought.
In my mind, it only makes sense to petition enTourage to make changes that it is in a position to do. And lowering the price in Europe isn't within their control at this point (for all of the reasons mentioned). As per their business plan, they are focusing their attention almost entirely on the US market--and they seem to be doing a pretty good job with that (i.e., being out-of-stock on the Midnight Blues).