Jeff Bezos: Why the Kindle Is So Expensive

Wired.com – “Nobody is likely to confuse a Kindle with a cellphone, but Amazon CEO Jeff Bezos said Monday he considered the cellphone business model: undercharge for the device and make it up on content and service fees. But, Bezos told Wired’s Steven Levy at Wired’s Disruptive by Design conference in New York, it’s cheaper in the long run for customers to pay something akin to the actual cost for hardware. And fees and minimum purchase requirements create friction.”