Amazon blinks! They will raise their prices. When Apple negotiated their publishers deals the publishers probably insisted that ebook prices were too low. Apple probably suggested that Amazon shouldn't enjoy a special price over Apple and that the publishers needed to hit them with the same price increase but we can't know what was said naturally.
Macmillan is probably just the first to hit Amazon. No more $9.99 books in the future? Of course if Amazon doesn't add color and more functions to the Kindle it probably would lose the fight to iPad sales anyway.
Maybe they need a cheaper Kindle in black and white and then one in color? But can they make a Kindle for $99 or even $199? Well $199 is only a $59 reduction. Maybe Amazon was doing this to sell books and newspapers anyway and will be happy to drop the Kindle if sales fall to the iPad and other tablets?
Click here for the NY Times article on this.
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