It is hard to have pricing power when your competition also has more capacity than he wants, so he prices his product as low as he can to make a profit, but also to get the sale.
It also manufactures and sells the Kindle e-reader and strives to offer customers the lowest prices possible through low every day product pricing and free shipping offers, including through membership in Amazon Prime.
So let's do the postmortem and guess what contributed to the low sales more: high prices, a half baked product or ads featuring a hairy-legged TV and Kevin Bacon?
It will quickly cut the length of lines as gasoline prices skyrocket, but will penalize low-income people, who still need this basic product to drive to work or take other necessary trips.