In theory, a free market and competition will force the price as low as it can go and still allow the company to stay in business. There are more costs involved than just manufacturing. I doubt these companies are making huge profits from the e ink business, and someone along the supply chain to W.H. Smith may actually be taking a loss as a long-term investment.
That being said, the single vendor for the e ink screens (PVI) represents a monopoly, so we may not see those costs go down until Plastic Logic or another competitor actually brings some new screens to the market.
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