Kindle Fire HD, Kindle Paperwhite Hardware Generate No Profit for Amazon
October 12, 2012 9:01 AM
comment(s) - last by
No Profit for you! Profits come with content sales not hardware at Amazon.
A lot of technology products and gadgets are sold at breakeven and at times even at a slight loss in order to make money off accessories or services the go along with the products. This is the case with the new
Amazon Kindle Fire HD
and Paperwhite devices.
"We sell the hardware at our cost, so it is break-even on the hardware," chief executive Jeff Bezos told the
Bezos notes that Amazon's plan for making money off digital content rather than the devices themselves has worked so far. Bezos says that the user tends to consume more digital media once they own a Kindle or a Fire tablet.
"What we find is that when people buy a Kindle they read four times as much as they did before they bought the Kindle."
"But they don't stop buying paper books. Kindle owners read four times as much, but they continue to buy both types of books."
Along with these new gadgets, Amazon has also recently announced the roll out its book lending platform in Europe. Users of Kindle devices in the UK, Germany, and France can now access the Kindle Owners Leaning Library.
This library allows users to borrow up to one book per month from a selection of titles, some of them very popular titles, at no cost. At launch, the UK service will feature over 200,000 digital books.
Amazon is launching the Fire HD tablet and the Paperwhite eReader in Europe on October 25.
This article is over a month old, voting and posting comments is disabled
RE: Profits? Heh!
10/12/2012 11:44:56 AM
yeah its a dangerous game. But if they price them competitive with the ipad they will lose to the ipad and they know it.
And they're probably worried that if apple gains total market share, then apple will systematically take over ebooks, music, movies, maps (cough), search, etc, all in their own time.
Microsoft more or less did it with a fairly open platform that allowed some competition, just imagine what apple will be able to do. Scary stuff. I'm both fascinated and frightened by Apple, MS, Google. Generally google seems less bad, but since people and their information are googles product... I'm not convinced that ultimately there is much difference.
RE: Profits? Heh!
10/13/2012 4:46:42 AM
Google is the totalitarian regime waiting in the wings for the fascist dictatorship of Apple to be deposed.
In all honesty, since the departure of Gates, MS is more like a transparent, conservative democracy--offering utility and service without unwanted intrusiveness.
but that's just my take...
RE: Profits? Heh!
10/15/2012 9:45:07 AM
A little melodramatic, don't you think?
Google doesn't care what you do, just as long as they know what you are doing.
"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard
Amazon Reveals $299 8.9" Kindle Fire HD, $499 LTE Model with $50 Yearly Data Plan
September 6, 2012, 2:05 PM
Xiaomi Aims to be #1 Smartphone OEM Within 10 Years, Apple Urges Caution
November 21, 2014, 9:33 AM
Quick Note: Samsung's Request to Dismiss Microsoft Lawsuit is Rejected
November 20, 2014, 12:53 PM
Amazon Offers "The Washington Post" Free for Six Months to Kindle Fire Owners
November 20, 2014, 7:41 AM
Apple Watch Screen Resolution, App Limitations are Laid Bare by Developer Kit
November 19, 2014, 11:31 PM
Apple Replaces “FREE” Label with “GET” on App Downloads in iTunes App Store
November 19, 2014, 5:38 PM
Nokia Lumia 635 LTE Windows Phone is Only $40 at Best Buy on Black Friday
November 18, 2014, 11:59 AM
Most Popular Articles
Wal-Mart: Miss Thanksgiving, Get Xbox One + Master Chief Collection for $299
November 17, 2014, 9:40 PM
Austrian Pilots Call Surface 3 Pro Flight Bag a "Dream Come True"
November 14, 2014, 2:00 PM
Nokia Explores Two Paths Back to the Smartphone Market
November 14, 2014, 9:05 PM
U.S. Marshals Using Fake, Airplane-based Cell Towers to Scan Cell Phones of Americans
November 14, 2014, 9:05 AM
It's Official: Twitter is Profitable "Junk"
November 16, 2014, 10:45 PM
Latest Blog Posts
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information