Amazon Selling Kindle Fire HD, Paperwhite at Cost
Jeff Bezos relies on users purchasing books and other media on the devices itself.
Amazon head Jeff Bezos has said the world's largest online retailer doesn't turn in a profit with its Kindle Fire HD tablet, as well as the soon-to-be-released Paperwhite e-reader device. Bezos stressed that Amazon sell the hardware at cost.
He later added that both devices' success would be defined by how many books and media files were bought by users. "We want to make money when people use our devices, not when people buy our devices," he said.
Bezos said that part of the reason the aforementioned strategy works was due to the fact that users' desire for media grows when they've owned one of Amazon's devices.
"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," he added.
Amazon's Kindle Paperwhite and the 7-inch Kindle Fire HD tablet will begin shipping within Europe on October 25.