Kobo Price Not Dropping in Australia

The eReader price wars may be strong in the U.S., but not on Borders’ Kobos in Australia. The Kobo costs $199 Australia, which is about $176 US, so its not too far from the Kindle and more than the Nook.
Malcolm Neil, the Communications Manager at REDgroup Retail Group, the company that runs Borders in Australia, told BookBee.com.au that the price wouldn’t be dropping to compete anytime soon because there have been supply chain issues, which will make it difficult to bring down the cost.
BookBee.com reports, “I put it to Mr Neil that with the Kindle 2 now at $US189, the Kobo hasn’t got a lot of headroom left in the ereader market. The Kindle is a tad more, but boats the convenience of the free Whispernet 3G link. Funnily enough, Neil knew the Kindle price in local currency to the dollar at yesterday’s exchange rate. ‘With shipping, it’s about $50 more now, so it’s getting very close,’ he said. So why doesn’t REDgroup just cut the price? ‘The margin on the product is very thin as it is. We’re not prepared to make a loss on it to sell books right now,’ he said. ‘Although I won’t rule that out around Christmastime.'”
OK, maybe they’ll enter the price wars during the holidays.