August 1, 2010

ebook Readers are Today’s Printers

Printer manufacturers have long since given up most of their profit margins on the actual printer hardware. Rather, they make most of their profit on the continuing sales of ink once the printers have been purchased. When ebooks were first introduced, they were relatively expensive. Both Sony's and Amazon's were over $300. Now there is a version of the Barnes and Noble Nook for $149 and a version of the Amazon Kindle for $139. At these price points, they're starting to make very little on the hardware itself, but hope to make longer term profits on the subsequent ebook sales. The major implication for the market is that dedicated ebook readers that don't have an integrated ebook distribution system are not going to fare well...