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Originally Posted by HarryT
Given the Amazon have the lion's share of the eBook market, it's clearly a strategy that has worked extremely well for them. I'm a little unclear about why you believe it "makes no business sense at all".
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It seems to me that the point of booksellers is to sell books, more books equals more profit. The development of eReaders and ebooks has gone far enough now that Kindle is no long an exclusive product. That market has settled in and sales are increasingly to mobile devices. There is no longer an advantage to keeping the Kindle bookstore entirely exclusive.
Besides, Kindle Unlimited is one service, not the entire bookstore. Better to tempt customers with the Amazon experience than simply lock them out of the store. Mobileread members have no trouble owning multiple eReaders but we are not typical. They are missing a market by shutting ePub out.