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This author leaves out that the Kindle could be a loss leader for Seattle based Amazon to sell a shit load more book downloads that cost them just a sliver of bandwidth.

Plus, Amazon is getting a foot hold in a new industry they have created from thin air.

Further, do you think the foreign E-ink disdlay maker is the only game in town? A lot can change in a few years.




Actually, he didn't leave that out.

> Of the total cost of $185, perhaps $40 to $50 is captured in the U.S. Is that a problem? After all, Amazon seems well-positioned to capture most of the value of the Kindle (the difference between the product's wholesale cost and retail price) and a healthy portion of the profits generated by sales of e-books to Kindle owners. In addition, the Kindle's wireless data service, which uses Sprint's data network, resides in the U.S.

> So why does it matter if the Kindle can't be manufactured in the U.S.?

And then he goes on to answer that question.




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