Word: price
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...though, analysts aren't expecting a mad rush to the iPad since the Kindle's $259 price tag is far cheaper than those of the iPad, which will range in price from $499 for the cheapest version to $899 for a model with 3G capability for Internet access anywhere...
Adding to the iPad threat is a dispute over e-book pricing. Apple signed deals that allow publishers to set the prices in Apple's iBooks store, and new e-book best sellers are expected to be priced at $12.99 to $14.99 - which is considerably higher than Amazon's $9.99 price. Publisher Macmillan is already pressuring Amazon to offer similar pricing. It demanded the right to set prices on Amazon, causing an angry Amazon to pull all of Macmillan's books from its site. However, two days later, amid a firestorm of debate, Amazon indicated that it would agree...
...That said, the higher e-book price could actually benefit Amazon's bottom line. "At $9.99, Amazon wasn't making any money," says Hamed Khorsand, an analyst at BWS Financial. "So for Amazon to be forced to sell a product at $12.99, they're basically being allowed to make a profit." If prices continue to escalate higher though, it could be a problem, analysts...
...Amazon's shares recently traded at $115.85 a share. Anmuth has a 12-month price target of $165 on the stock while Khorsand is even more bullish with a $200 target. "I think there's considerable upside from here," says Khorsand. "They have a level where operating margins are tracking above 5% in 2010 and that provides them with a level of cash flow and earnings that would support a $200 stock price...
Admittedly, the op-ed succeeded at one thing: application of stereotypes. The penultimate paragraph invites readers to, “[w]atch how quickly [women] can figure out that marked-down price of any clothing item during a sale.” Comments on this jewel are hardly necessary...