Quote:
Originally Posted by fjtorres
Economies of scale make a big difference: Fire is going to *launch* with an order in the 4-8 million range, Kobo will do well to sell a couple million over a year.
At least Kobo correctly understood that matching the $199 price point and open apps aspects of Fire is more important than specmanship.
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Amazon are also prepared to make a small loss on the hardware because people will spend more money in their closed environment (and with Fire that includes their app store, video store, music store, etc) - much like making a loss on selling the razor, but tie people in to buying the blades.