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I always thought it made a lot of sense to be in the retail channel. This is the type of product that a lot of mainstream buyers would have to look at...and feal. it's the nature of electronics. this is a high priced product that requires selling effort. just a website simply isn't going to cut it for a lot of people.
The consumer needs to experience this product before the purchase....certainly for most consumers on a budget. Although, Kindle was greatly helped by the Sony ereader which grew the category for it and was in retail...thus to a certain extent it was freeriding. on the sony.
Overall, I retail is the next step in the market for the kindle. growth will be explosive from here...only thing holding it back is the manufacturing of the screens.
is the kindle like the ipod where they make the money on thehardware or is it like a printer, where u make the money on the cartridge? it would seem the printer model makes more sense of amazon.
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