Remember how much money e-readers were supposed to save book buyers? It was among the big reasons why 20 million Americans decided to take the plunge. So why is it that consumers are still paying through the nose for e-book titles that ought to cost a fraction of the price charged for the used hardcover version? A lot of readers fuming over that question reminded me of their frustration in the aftermath of the latest flare-up between Amazon and the publishing industry. On Wednesday, more than 4,000 e-titles sold by Independent Publishers Group, one of the nation's biggest independent book distributors, got pulled by Amazon as the result of a dispute over pricing. IPG's Kindlecontract was up for renewal and Amazon sought to extract more favorable margins. IPG refused to cave and so, the impasse. Related stories 5,000 Kindle titles shut down by Amazon in pricing dispute Kindle e-book piracy accelerates Amazon e-book reader reviews Kindle This constitutes the newest chapter in an … [Read more...] about So how much is a fair price to pay for an e-book?
Price to sales
Can Dell Computer conquer the world? As PC sales slow worldwide, the Round Rock, Texas-based company has embarked on a broad campaign to gain market share by cutting prices, according to analysts. In the past, the company focused on keeping profit margins high, leading to strong profitability, robust revenue growth and relatively high average selling prices on its PCs. Now, with the maturation of the PC market, Dell is undercutting competitors in price to rapidly gain market share. But the short-term cost to Dell could be high: reduced profitability. "It's very apparent that in the last quarter Dell traded profitability for market share," IDC analyst Roger Kay said Friday. "It was very deliberate." Dell is currently the No. 2 computer maker worldwide, with 12 percent market share. And it's the No. 1 PC maker in the United States, with 16.9 percent market share. Analysts now expect Dell will pass Compaq Computer as the No. 1 worldwide PC maker during the first quarter. The … [Read more...] about Dell to keep cutting prices to gain market share
CUPERTINO, Calif.--Every second of every day, 10 new inkjet cartridges sporting Hewlett-Packard's name are brought into the world and made available to ink-gobbling consumers. HP is delighted with that statistic, but its significance is about to change as the company revamps its printer strategy. Printer supplies such as ink cartridges and high-quality paper are a big part of HP's profits, said Chief Financial Officer Bob Wayman, speaking at a gloomy HP securities-analyst day Wednesday. But those profit margins are being sacrificed as HP slashes prices in an effort to win more market share in low-end printers. "As we move into the low end, we not only need a different cost structure (for the printers), but we probably need a (to cut prices) for the supplies we sell," Wayman said. In the first half of HP's fiscal year, home-printer supplies accounted for more of HP's revenue than PCs or the printers themselves, said Pradeep Jotwani, president of the company's consumer business … [Read more...] about HP cutting prices to grab printer market
Nintendo is cutting the price of the 3DS after disappointing worldwide sales. According to the company, U.S. customers will find the handheld game device on store shelves for $169.99 as of August 12. That's down 32 percent from its initial selling price of $249.99. In Japan, customers will be able to buy the 3DS for 15,000 yen ($190), discounted from its initial price of 25,000 yen ($317). Nintendo described the decision as a way to "create momentum for Nintendo 3DS and accelerate its market penetration toward the year-end sales season, when the lineup for the applicable software shall be enriched." Nintendo of America President Reggie Fils-Aime was a bit more upbeat about the news, saying in a statement that the price cut is "huge motivation" for "anyone who was on the fence about buying a 3DS." Related links • CNET review: Nintendo 3DS • Nintendo posts loss as revenue slides • CNET's summer gaming guide Nintendo has been having trouble selling the 3DS since it … [Read more...] about Nintendo slashes 3DS price to $169.99
Nintendo on Thursday said it will drop the price of its hand-held 3DS console from $249.99 to $169.99 in the U.S., starting August 12. "For anyone who was on the fence about buying a Nintendo 3DS, this is a huge motivation to buy now," Nintendo of America President Reggie Fils-Aime, said in a statement. "We are giving shoppers every incentive to pick up a Nintendo 3DS, from an amazing new price to a rapid-fire succession of great games." The price drop will also occur in overseas markets between July and September. In an earnings statement, Nintendo said the move is intended to "create momentum for the Nintendo 3DS and accelerate its market penetration toward the year end sales season, when the lineup for the applicable software shall be enriched." The company also revealed that it has sold 830,000 3DS devices since its March 27 U.S. launch. As a thank you to those who bought the 3DS, Nintendo is offering them 20 free game downloads from the Nintendo eShop. Users have until … [Read more...] about Nintendo Dropping 3DS Price to $170