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Old 06-23-2013, 10:45 PM   #10
GeoffR
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Location: Te Riu-a-Māui
Device: Kobo Glo
I think the reason behind a premium e-reader is to attract the premium ebook customer: one who is happy to buy the top of the line ereader rather than the budget model or a general-use tablet might also be more likely to buy significantly more books than the average customer.

If Kobo is only breaking even on selling devices, and expects the profits to come from ebook sales, then increasing the spend per customer is probably quite important. I imagine one customer who spends $500 per year on ebooks is worth a lot more than 100 customers who spend $5 each.
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