Amazon is definitely well positioned, especially when super-sized iPod touch-class devices and other larger form-factor mobile Internet devices are introduced
The true brilliance of Amazon's move is that you no longer need a Kindle anymore to read current bestsellers in e-book form. Amazon, like thousands of businesses before it (see also: iTunes store, console games), has shifted into selling the razor blades, not the razors. Those $10 downloadable books—800K software files, with no physical material costs, shipping costs or warehousing costs—are surely where the profit is.
In other words, Amazon, having ignited new interest in the whole e-book concept with its $360 Kindle reader, is already steering itself from hardware back to software, to e-books as a service, to the skills where it already excels.
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