Quote:
Originally Posted by SkinnyPupp
It's the same way people can buy a subsidized phone, or pay "retail" for it if they don't want to be locked to an expensive contract. Only this time, the device is subsidized by the software is on it.
Basically apple does the same thing - force you to use their app store, their music store, their everything. Except Apple doesn't have to subsidize the price, since everyone wants one already because of Magic.
The Amazon tablet doesn't have to be a dual core 9.7" IPS tablet either. It can't be shitty, but it doesn't have to cost $300 to make to be able to sell for $100-150.
$249-299 won't work either. Because nobody wants a tablet. Unless it's an ipad (Magic), or unless it's a ridiculous deal.
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Except that no manufacturer I know of subsidizes their products. It's the wireless carriers/providers that are subsidizing devices by locking people into fixed term contracts (essentially you're financing your device).
Amazon isn't going to be able to lock people into a contract, so they will have no guarantees whatsoever as to a monthly income from each tablet. This is why they can't take much of a loss on each tablet.