Since then I've mentioned this forecast to all kinds of folks. In August, 2010 I had the chance to point it out to Jeff Bezos, CEO of Amazon. He merely smiled and said, "Oh, you noticed that!" And then smiled again.This fits well with the theory that Amazon isn't in the e-reader business to profit on hardware. They're in it to marry people to Amazon.com. Profit margins on hardware rarely match the margins on software, and e-books are much more like software than they are like hardware (hardback/paperbacks in this case).
This also puts an interesting twist on a comment I heard Steve Jobs make on Charlie Rose years ago. When asked about whether Apple would move into the e-book business, Jobs answered that the entire publishing industry is flawed from the top because people don't read (or buy books) nearly as much as they listen to (and buy) music. His speculation was that there wouldn't be enough volume in the business to make it worth pursuing.