[Sizlak]

Is he saying that Amazon will sell the Kindle at a loss, so they can control the market where they sell ebooks at a loss? And what, make it up on volume? I think they'll have to trim down the features on the low end version to get production costs way down. Maybe get rid of the keyboard.

[loire280]

Since we're still in land-grab mode in the ebook business, selling at a loss might make all kinds of sense.

Once users amass a virtual bookshelf, you've got them locked in pretty hard, especially if they use the Kindle to read it. If the iPad becomes the e-reader of choice, lock-in is weaker because you can use all of the major bookstores on it.