paidContent reports that Bernstein Research Analysts Claudio Aspesi and Jeffrey Lindsay believe a price hike in Kindle books is coming. They think the price will jump from $9.99 to $12.50.
They write: "Should $9.99 become the universal price pint, publishers would ultimately be compelled to lower their list prices over time, which would significantly lower their margins. We think Amazon's strategy, however, is to raise electronic book prices over time, while simultaneously influencing the book publishers to accommodate at least a partly electronic book model." A suggested new price point that could "dramatically" increase margins for publishers and Amazon: $12.50.
Not all Kindle books cost $9.99 but the latest releases do. For a price jump to $12.50 to work people would have to be willing to pay more for a Kindle digital version than a paperback.