The coming eReader apocalypse

ZDnet: "Over the years I have made dire predictions for the future of dedicated eReader technology. The last time I visited this subject was back in July of 2010, where I said that a "zero margin" situation would eventually come to pass where manufacturers of such devices would have to sell them at no profit margin or even below actual manufacturing and marketing cost.

At the time when I wrote that article, the Amazon Kindle and the comparable Barnes & Noble NOOK were selling for $139.00 each.

Today, nearly two and a half years after writing that piece, the base-level subsidized Kindle with Special Offers is selling for $69.00 and the equivalent NOOK is $79.00.

Clearly, both of these devices have reached a zero-margin or below manufacturing cost go to market price for both of these companies. Obviously, both companies still have been able to justify selling them at that price point, by taking losses on the hardware and making money on the content."

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