Quote:
Originally Posted by kaufman
You get a number that doesn't mean anything, because there are a large number of differences between the two devices.
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Are they really that different?
The screens are comparable: same pixel counts, one a bit larger, the other with pricier glass.
The cases? Waterproof vs magnesium? Same cost.
Card slot vs sensor buttons? A wash.
Just because the two have different features doesn't mean they can't cost the same to build. Odds are they both have the same unit cost coming off the assembly line.
If Kobo can sell the H2O ad-free for $180, Amazon
could sell Voyage for $180. Factor in $30 for the ads and you're at $150.
Which means a $50 premium for the best Kindle in the world because:
1- people will buy all they can make of them, anyway
2- they probably couldn't make enough of them as they would sell at $150
3- at $150 it would seriously dent the sales of the PW2
The key point is most likely the second; if they are supply-constrained it makes sense to throttle back demand by pricing high and pocketting the bonus. Plus, they don't have to drop the price of the PW, which would then ding the sales of the Touch2.
Besides, when your biggest competitor is busy committing suicide its a good time to reset pricing expectations away from near cost prices.