@jhuddle You are right that what Amazon really wants is to sell e-books. They probably don't much care if it is to read on a Kindle or using a kindle app on some kind of multi-purpose pad. Another thing to consider here is that Amazon would probably be glad to sell you a Kindle at a significant loss on the sale of the device. This is a very similar situation to the cellular providers where you can get a discounted or even free phone by locking into the carrier's voice and data plan. I bought my Motorola Droid for $99 and got one for my wife for free under their buy one get one free plan they offered a couple of months back and I think Amazon will go with similar schemes in order to sell the e-books.
I think the main purpose of the Kindle in the first place was to seed the market for the sales of e-books and they don't care if they ever make a dime on the device.
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