Quote:
Originally Posted by wodin
I seriously doubt that anyone is losing money on ereaders. As consumer electronics go, these thing have one of the highest margins around. When Asus and Acer can build full on netbooks and make a profit at $300 each, how can anyone not be making a ton of money selling ereaders with no keyboard (to speak of), no hard drive, a processor that's whimpy even by cell phone standards, a tiny battery, an open source OS, etc. for two or three hundred dollars? Build cost for these things can't be over about fifty bucks.
Why do you think everyone's jumping on the band wagon? The margins these things draw can only be dreamed of in any other niche of the consumer electronics arena.
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Dear Wodin:
Everyone jumping on the bandwagon is far different than what you notice. The ones jumping on the bandwagon are Barnes & Noble types. They are NOT looking at making anything on the eBook Readers. They look at making money on the eBooks themselves. That is where the profit is.
I try very hard to be honest all the time on this forum. I do not expect anyone to instantly believe... but this is a pretty learned crowd. THINK!! Amazon makes it so you can buy ONLY from Amazon. WHY? The profit is in the eBooks. There is nobody new jumping into just making eBook Readers. Why do you think Plastic Logic teamed with B&N? Because they might get some of the money from sale of the huge library of eBooks.
The "independents" like Astak are making the thinnest of margins.