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Re:Kindle 2 Fails Man's Drop Test, Forces Amazon To Pay Him ... by zach on Tuesday October 20, 2009 @05:49PM (#893433)
No, I'd say it's embedded in Amazon's stock price. They presumably already sell the Kindle hardware for a loss.
Re:Kindle 2 Fails Man's Drop Test, Forces Amazon To Pay Him ... by mediaman on Tuesday October 20, 2009 @06:23PM (#893492)
That subsidized price being determined by a calculation of how low it may be and still return a sufficient lifetime profit given the recurring revenue thereafter; should litigation costs rise, the price at which it is offered will adjust to maintain the same rate of return.