You have to wonder how long this can go on for and who is going to lose. The sense I get is it sure won’t be Amazon, but it VERY WELL may be the Publishers!
However, another senior publisher attacked the pricing strategies of W H Smith and Amazon. He said: “It’s absolutely absurd to devalue our product but I’m not surprised because our industry is populated by nincompoops.”
He said Amazon’s move could make the agency model less attractive to publishers. He said: “In this instance, on the wholesale model, publishers are fine because it is retailers taking the pain. If we say a book is £10 and you get 40% discount, we get £6. If the retailer chooses to sell it for £2, we’re still all right.”
A review of e-book prices undertaken by The Bookseller shows that Amazon and WHS are offering the lowest prices. Kindle and WHS e-books are also significantly cheaper than their counterparts on Apple’s iBookstore, where prices are set by the publisher.