An interesting analysis has been going around today that hints that the Kindle from Amazon could eventually be given away for free. Although it might seem bizarre that an electronic device with no subscription costs could be free and make money, I think there is some possibility in this.
Looking at the graph below, we see the price of the Kindle started around the $350 mark and then dropped in price three more times. This pricing almost perfectly followed a straight line on the graph. When looking forwards to the end of the year, some time in mid November will potentially see the Kindle being given away for free.
Although it might seem stupid for Amazon to give away a free Kindle, it makes you wonder how much the hardware actually costs to build and on average, how many books are purchased per user to read on the Kindle. With Kindle eBooks being electronic, shipping costs, storage costs and manufacturing costs are a lot less. Perhaps Amazon is looking at the business model of getting people to buy books electronically rather than physical books.
It certainly isn’t impossible these days and if it happened, we wouldn’t be surprised. Lets see what Amazon announce towards the end of the year. Looking at the graph, a new price could be expected between then and now, or they might just hold off till the end of the year.
Via: KK
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