Quote:
Originally Posted by pwalker8
It dropped because Apple and B&N entered the market giving Amazon some competition. Before that, the only competition was from the Sony Store.
Keep in mind that just because some judge buys into someone's narrative, doesn't make it true, it's just means that the judge bought the narrative.
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We get back then to just how this "competition" worked with prices off the playing field, and why it failed so badly as to allow enormous price rises. I'll give you a hint. The conspiracy had something to do with it. It is very clear that Apple had no interest in entering the market if it had to compete on price with Amazon.
I might add that my earlier blanket statement about agency causing Amazon's loss of market share was too general and simplistic. It is not quite that simple. B&N entered the market in 2009 with a very good ereader and an adequate online store. Apple entered the market in 2010 with its IPad. I recall Steve Jobs or one of his executives was quoted at the time as wanting the IPad to be the best device for reading which would triumph because of its general utility. People not wanting to carry both a Kindle and an IPad would choose the IPad. Yet apparently Apple wisely had little confidence in this since it would not enter the market whilst it was price competitive. Amazon was, as you point out, was always going to lose some market share at least initially by the mere entry of B&N and then Apple to the market. Removing price competition was a pre-condition to Apple entering the market and removed Amazon's best method to compete and regain this market share. Which, of course, it mostly did when the conspiracy collapsed. Both B&N and Apple are still selling ebooks today. The have not "drifted away", though one could certainly argue they have not been that effective in a competitive market.