Update: Well, roughly a year later the cat is out of the bag. $50 would have been too good to be true. For more, join our Kindle discussions
Rumors are that the Kindle, Amazon's leaked E Ink e-reader, may be heavily subsidized to push the online retailer's e-book sales. Quoting Nick Hampshire of Afaics:
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This may only be a rumour but it certainly is a viable option, an analysis of the manufacturing cost of the device indicates that a subsidised retail price of about US$50 is possible. And, from market research we know that this would probably be low enough to create a sufficient demand for e-books and e-reader devices to ensure that the company not only recouped its subsidy cost but created a growing market. However, this would mean subsidising the sale of several hundred thousand Kindle readers.
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Related: Amazon E Ink reader? (with specs),
Remember Kindle? (with pics)