Amazon Preempts Victory Over Apple By SLASHING E-Book Prices
Amazon (NASDAQ:AMZN) is in love with the $9.99 price point. The company has notoriously taken hits on e-book sales in order to gain market share, and the strategy worked so well in the past that major publishers and competitor Apple (NASDAQ:AAPL) teamed up to end the practice. After the Justice Department claimed price-fixing, Hachette, Simon & Schuster (NYSE:CBS), and HarperCollins decided to settle, while Penguin (NYSE:PSO), Macmillan, and Apple will go to court.
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In the meantime, Amazon has announced its new Kindle Paperwhite and has already begun offering bestsellers for around $9.99. Popular titles have been cut as much as fifteen dollars. Since Apple decided to fight the ruling, the company probably won’t be offering any similar discounts. The ruling clearly works in favor of the company, and could be a major factor propelling its steady growth into the future.