Quote:
Originally Posted by SteveEisenberg
There's no way to know for sure, but I'm thinking this is the most probable explanation. eInk needs Amazon more than Amazon needs eInk, so Amazon can demand ever-lower prices.
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To some extent. Amazon and Kobo sell both sell tablet-like devices so they are not 100% dependant on Eink.
But both sell entry priced Eink readers which are probably priced below their cost. And these are pretty functional devices.
I see it as a loss leader. Conditioning people to read electronically and making it easy to purchase books from the ereader vendor. This strategy has paid off big time IMO.
Amazon forcing the price down is akin to killing the goose who laid the golden egg. I am sure that Amazon etc. would survive quite well, but I am thinking they would be better off with the EINK screen manufacturer still in business and that Amazon at least is able to see this.
And while sales may be declining, they are probably at a very healthy level compared to 2011 and earlier. And it seems to say that sales are not yet declining, just not increasing dramatically. Like a lot of things once the initial growth spurt has ended.
Helen