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Shanda Bets on Future with Underpriced E-reader

|Includes: AAPL, AMZN, Shanda Interactive Entertainment Limited (SNDA)

 (source:178) Newly released e-readers from Shanda are almost $147.7 below its production cost, targeting at enlarging original literature selling.

Bambook, a new e-reader released by Shanda, is priced at $147.4, half of the product cost. Everybody who has been curious about Bambook before is shocked by the extremely low price. Since the products of the same functions from Hanvon and Huawei are sold for nearly $443.

"This is what we visualized before, and we are betting on the future, not the current profit.”Hou Xiaoqiang, CEO of Shanda Literature told the reporters. According to Hou, the production cost for Bambook is $266.

As a content provider which is different from companies making profit through hardware, Shanda is actually hoping to enlarge the number of their readers through this new device they sell. 

Disclosure: no position