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
This is to be expected....
10/15/2012 8:40:43 PM
I applaud Bezos for doing this his own way instead of Apple's way, but I wish we could let my dad use my account on his phone so he can purchase e-books with his credit card instead of using mine. It wouldn't let him, in fact, it damn near wiped out my e-books on my phone trying to figure the damn thing out!! You have to use seperate accounts in order to use a different card when you go through the Kindle store. Why I ask WHY?!
"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs
Amazon Reveals $299 8.9" Kindle Fire HD, $499 LTE Model with $50 Yearly Data Plan
September 6, 2012, 2:05 PM
Google Testing Smart Thermostat in St. Louis
December 17, 2013, 11:43 AM
Microsoft Wins "Synchronized Calendar" Patent Case Against Motorola Mobility
December 17, 2013, 11:23 AM
President Barack Obama Meeting with Tech Leaders to Discuss HealthCare.gov, NSA
December 17, 2013, 10:59 AM
Quick Note: E-Waste to Increase by One-Third by 2017, U.S. Leads in E-Waste Output
December 16, 2013, 12:20 PM
Amazon Announces No Interest, Kindle Fire HDX Payment Plan
December 16, 2013, 10:35 AM
Google Removes "App Ops" Privacy Control Feature from Android 4.4.2
December 16, 2013, 9:29 AM
Most Popular Articles
Report: Windows 8.2 Revives Start Menu, Runs Metro Apps in Desktop Mode
December 10, 2013, 2:56 PM
Chinese Media Puts Positive Spin on Its Smog Problem, Touts 5 "Benefits"
December 11, 2013, 12:39 PM
China's Lunar Rover Enters Orbit, Prepares for Historic Sat. Landing
December 13, 2013, 5:00 PM
The History of Normandy: How Nokia Plotted a Low-End Android Line
December 11, 2013, 8:12 PM
Metro-Enabled Firefox Browser Expected to Land After Two Years of Work
December 12, 2013, 5:21 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information