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Starbuck
04-13-2011, 08:37 AM
Halftime: Is a Free Amazon Kindle on the Horizon?


On Tuesday, Amazon.com announced it has dropped the price on its Kindle e-reader. The new Kindle with Special Offers will cost $114 $25 less than the currently lowest-priced Kindle and include advertisements on the bottom of the device's home page and on its screen savers.

When it comes to e-readers, though, price isn't the point, ThinkEquity analyst Aaron Kessler said. It's more about e-book sales, he explained. After all, digital book sales is what's really bringing in the money for Amazon [AMZN 180.48 -3.56 (-1.93%) ] and not necessarily the devices themselves. He likened it to the razors and the razor blades model, a business tactic where one good is sold at a discount while the second dependent good is sold at a considerably higher price.

"I think originally, Amazon's plan was to sell the Kindle, I mean obviously, it was a much higher price point and it was less about the books," Kessler said. "I think it's now switched the razor blades model, where they're likely almost giving the Kindle away for free, potentially at even a small loss and looking to make that back with volume on the books."
http://www.cnbc.com/id/42551182

That's what happened to cellphones. The original cellphones were bag phones, the size of shoe boxes, or were hard wired in your car. And they cost 1400$

Gingersnap
04-13-2011, 09:53 AM
Interesting. I see ereaders a lot now. When they sell them at Wal-Mart, we'll know the ereader has "arrived". :D

fettpett
04-13-2011, 10:01 AM
Interesting. I see ereaders a lot now. When they sell them at Wal-Mart, we'll know the ereader has "arrived". :D

the one here carries the Sony ones

Gingersnap
04-13-2011, 11:41 AM
the one here carries the Sony ones

Really? I need to look the next time I go there.

fettpett
04-13-2011, 01:09 PM
Really? I need to look the next time I go there.

yeah, they have
http://www.sonystyle.com/webapp/wcs/stores/servlet/ProductDisplay?productId=8198552921666260686
http://www.sonystyle.com/webapp/wcs/stores/servlet/ProductDisplay?productId=8198552921666257815

i think, i haven't really looked hard at them, but they've had them for a while