Huh??

“Amazon sells most Kindle books for $9.99 or less. Publishers say that they generally sell electronic books to Amazon for the same price as physical books, or about 45 percent to 50 percent of the cover price. For a hardcover best seller like Scott McClellan’s “What Happened,” the former press secretary’s account of his years in the Bush White House, that would mean that Amazon appears to be selling the selling the book for about 25 percent below its cost.”

from here

Can someone explain the economics? Or, is it Amazon’s attempt to get the publishers in a corner? At the same time, are the publishers out of their mind?

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About Amit
Conventional, boring, believer, poet, Shayar (to be precise), lover of music, musical instruments, and all that can be called music (theoretically or metaphorically), jack of all master of none, more of a reader less of a writer, arbit philosopher, foolish debater.. and many more such things.. like so many people!

2 Responses to Huh??

  1. Amit says:

    guess we have beaten it to death offline 😉 Thanks for the insights though. They are valuable.. and appreciated! 🙂

  2. sulabh says:

    well, since amazon sells the kindle, they can afford to do this for two things:
    1. initial launch, and they are trying to get high adoption rates
    2. cross sell dynamics, they might end up reducing the prices of kindle in the future and getting the books at the same price
    3. they are not printing, savings on money and inventory space, etc costs would be huge.

    with publishers, they are already losing to the internet world…
    my sense is e-books cost cheaper for the most part, or are usually free…:)
    the only groups of people who don’t have a panache for reading on the computer, they will continue to buy hardcopy…but this is where the Kindle is so great…Newpapers, magazines, etc. all on the kindle….
    Online search/definitions and explanations as and when you need them

    My 2 pence….

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