Quote:
Originally Posted by fjtorres
Bear in mind that pricing ereaders at near cost wasn't Amazon's idea. Their pricing tracked Sony and they happily pocketed the 40% margin of the K1 and K2.
You can lay the "credit" for near-cost pricing at Nook's feet. They were the ones who reset the baseline. Amazon merely undercut them by $10 and stayed $10 cheaper. It inspired them to start the Special Offers ad business as a sideline. A "sideline" that now generates over a billion a year in revenue. Bezos owes much to Riggio.
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You sure about that? I recall the 650 being expensive then they released the T1 to compete with lower priced ereaders.
edit. The 650 was out the same time as the Kindle Keyboard and was significantly more expensive. The K4 and the T1 came out at the same time. So Amazon certainly wasn't following Sony on pricing.
edit. The original Nook ereader was comparable in price to the KK and the Nook ST was released the same year as the K4 and again was comparable in price.
In short I see no evidence of Amazon being led by competition to lower price and quality in their ereaders. I don't know where you're getting your information...