The Real Reason the Kindle Fire Costs $199 (ContributorNetwork)
ContributorNetwork – A lot has been made of the rock-bottom price tag attached to Amazon. com’s new multitouch tablet. The going theory right now is that Amazon hopes to make it up in volume; not volume of tablets sold (Amazon may well be taking a loss), but the volume of ebooks and other digital content sold. Amazon’s closest competitor, Barnes and Noble, seems to have taken just such an approach with its Nook Color, which was already considered a bargain at $249.
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