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If this has already been mentioned please excuse.....
Its obvious that Amazon is selling ebooks as loss-leaders to drive Kindle sales. Couple this with Amazon being mum about Kindle sales numbers only gives credence.
Amazon sells the ebook for less than they paid for it, and more than makes up the difference in the Kindle sale. Amazon knows exactly what they are doing... and now that publishers are calling them on it they try to paint themselves as being a "victim".
Right or wrong, publishers probably feel that they were being used and having their content devalued in order to boost sales of the Kindle. Since Amazon is a market leader, their content is devalued everywhere.. not just with Amazon.
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