Amazon has a lot of latitude in setting the price of a Kindle. That is because the device is essentially only useful when purchasing content from Amazon. They

Amazon has a lot of latitude in setting the price of a Kindle. That is because the device is essentially only useful when purchasing content from Amazon. They should lower the price if it would increase demand for their content. If it weren't for the fact that many users wouldn't use a FREE Kindle, they probably should give Kindles away. Buy 10 eBooks and get a Kindle free would be a good strategy.