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Originally Posted by HansTWN
They couldn't sell me the Kindle Fire for 20 bucks with only 8 GB and no expansion options. 8 GB is fine for a dedicated reader, but for a tablet? One movie and some music and you are maxed out. The cloud would only work if they included unlimited 3G -- which obviously isn't feasible.
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For a device that you take out-and-about with you? Yes, I agree. I wouldn't swap my iPad for a Fire, no matter how little it cost. But Amazon are clearly aiming this as a cloud player for use in the home, with WiFi. That's the only use-case that makes sense with it.
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Would another $50 really matter? If expansion slots don't matter, why does every phone have one?
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I don't think it's a matter of cost; it's a matter of Amazon not wanting people to load their own video content. The device is being sold at a break-even price point - perhaps even at a loss - because the expectation is that the user will buy content from Amazon.