Quote:
Originally Posted by rcentros
I'm guessing the color screen (since it's newer) is more expensive, so it's doubtful that the per unit profit margin has gone up significantly. But there's also sale's volume. Higher profit margins per unit won't mean much if you sell significantly fewer units.
I think you're assuming that those Kobo buyers who want a Libra B/W (replacement for the Libra 2) will stick with Kobo and buy a Libra Colour. I would say that's doubtful. More likely they would buy a 7" Era from PocketBook (even though they would really rather buy the Libra B/W).
A color eReader and a black and white one are significantly different. (At least that's the way I see it.)
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I agree with most of what you said. In summary, if a product has a better margin but sells fewer units, the profit will not necessarily be higher. However, I didn't assume that consumers will automatically buy the Colour. In fact, my first paragraph implied that consumer demand will be the driving force for the future of Libra models.
"Consumers play a crucial role in influencing accounting metrics by accepting or rejecting new products, thereby shaping the market."
If the Libra Colour experiences extremely poor sales, then no matter how good the margins are, the company will be highly incentivized to revert to the BW model. Public companies work for the shareholders, and consumer wallets ultimately drive future business decisions.