I recently posted that the free market and competition will save consumers $462,000,000 per year. Turns out I was wrong.
It could be closer to $1,709,400,000.
As retailers begin to understand the e-book market, they are understanding that it might be better to GIVE AWAY the reader and make up for the cost of that reader in the sale of e-books:
“(Prices) could go to zero,” said Needham & Co analyst Charles Wolf, who said manufacturers should price the devices low to drive sales of e-books. If priced correctly, e-books would make up for any losses on the e-readers themselves.
“Amazon’s model should be selling books- and to hell with the device itself,” Wolf said.
And the reason we are seeing such cost models?
“The iPad is raising hell with everybody.”
But certainly, with decreased price, the quality must surly suffer?
The price cut on Thursday was on the Kindle DX, which comes with a 9.7-inch screen. The company said it updated that reader to include a new graphite enclosure and a new, high contrast electronic ink display.
The reader will … have free 3G wireless connection with no monthly bills or annual contracts, as the earlier model did…
The damnable free market.