Quote:
Originally Posted by Shaggy
Keep in mind that Amazon not only sells kindle books, they also sell the kindle. That may seem like stating the obvious, but they are offering deep discounts on kindle format books in order to increase the market for kindle readers. They make up the loss they take on the content by selling more hardware.
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It is rather the other way around, i.e., they sell the hardware cheap and pay every month for the EDGE radio connection. They then keep the platform closed (ever wondered why mobipocket.com books don't work on the kindle, although the format is the same?) and bully the publishers to lower their wholesale prices in order to make a profit through sales of high margin e-books.