While there's an odd aspect of race to the bottom that I'm not sure is entirely healthy for the iPhone app ecosystem, the idea that software should be priced low enough to pass the average user's "why not" threshold is a powerful one.
Emphasis in original.
If software that does something is priced at just ninety-nine cents, of what monetary value is "software" -- ePub eBooks -- that does nothing?
Previously here:
Why eInk, ePub, And eBooks Will Fail
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