Quote:
Originally Posted by =X=
The price drop will actually result in a short term sales loss for Amazon since that is effective immediately.
However there will be an increase in the purchasing of Kindles. So while the price drop does influence Amazon immediate sales figure, it will result in more book sales where that is their true profit.
=X=
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I agree that could definitely be the outcome. But, I also don't think Amazon cut the price of the Kindle 2 for this reason at this time; it seems to me they cut the price because B&N cut the price of the Nook, and they felt they had to respond. I think Amazon was probably pretty happy selling both books AND hardware at a decent profit
