The price consumers have had to pay for electronic format books has escalated in the last few years, since the introduction of the Amazon Kindle. There was a time when ebooks did not cost over $9.99, unless it was a school textbook. Being set by the publisher, the prices of new releases, in some instances, began to climb to over $9.99 a book. The publisher saves a lot of money in printing costs and materials when producing eformat books, so it didn't make sense that prices for ebooks were ever increasing. By Simon & Schuster's compromise to lower the price consumers will have pay for ebooks, sales will increase, thus making the consumer, Amazon, and the publisher happy, because everyone benefits.
Yes, in my opinion this compromise should result in lower prices for books. Amazon has been working hard to provide books at lower prices, and this compromise provides a financial incentive to Simon & Shuster to provide their publications at reduced prices. If Amazon extends these lower prices to their customer, it should result in an increase of sales which is good for all parties involved.
Amazon has a very large and far reaching customer base, possibly the largest of any online company and as such can have a big impact on any market. With Amazon now able to lower prices in order to stimulate sales, perhaps Simon & Schuster will see the revenue that can be generated with lower prices and will follow suit themselves.
The end of the Amazon and Simon & Schuster saga is good news for the readers and also the financial markets. I, as a fan reader, hope the day of the cheap books, by price, not by theme, has come.However it`s doubtful that this purely business dispute will bring in the era of the low priced books. The books prices nowadays are mainly depending on whether paper or paperless versions are sold to the public.