Beyond the Kindle hardware and software
Because Amazon sells its family of Kindle devices through its own Web site, it does not need to share revenue with another retailer. And in most states, customers do not have to pay sales tax on those devices.
“If you price your products in such a way that no one can compete with you, that has to be a good thing in the end,” said Scott Devitt, an analyst at Morgan Stanley.
Amazon Introduces Tablet That Undercuts iPad’s Price - NYTimes.com
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