Kindle Fire HD, Kindle Paperwhite Hardware Generate No Profit for Amazon
October 12, 2012 9:01 AM
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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.
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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?!
"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference
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