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That all sounds great but it's not very sustainable at the moment. The Kindle is a fairly expensive device to produce. The e-ink screen and the controller aren't cheap. Amazon's taking very little profit and possibly a loss on many of the $9.99 new releases and best sellers. I think eventually the business will be able to support these kinds of pricing models but I doubt Amazon could sustain the business as it is right now if they did that.
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