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Originally Posted by ron0909
To sum up my long winded story, I think that Amazon sells the Kindles at cost or more than likely below cost in hope that they may recoup their expenditures and then some via book sales. (Think of inkjet ink replacements, loss leaders in retail stores etc). The prices of e-ink screens alone justifies this theory.
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I doubt that Amazon sells the Kindle at an actual loss, since they have pretty low volumes on their books (and pre-Agency, they sold NYT bestselling books at, apparently, a loss). They can't sell *everything* at a loss. (And of course the price of ink for inkjets is shockingly high in a way that books aren't).
And I'm pretty sure that by buying millions of screens, Amazon gets a pretty good price.