Amazon Selling Kindle Fire HD, Paperwhite at Cost

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.

 

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  • assasin32
    Makes sense they make it difficult for competitors and give customers a convenient way to spend money with them. They eat the cost of not making money for now and make even more when the customer buys products for said device.
    5
  • aggroboy
    Kinda opposite of Apple. Steve Jobs would use itunes as key draw to sell more premium devices, whereas Amazon would sell devices at cost to promote use of their site.
    5
  • jankeke
    Since I have a Kindle, I read more books but I dont buy paper books anymore. It's so much easier to just go online an buy an ebook and get it in seconds. But I still buy paper magazines.

    I use my Galaxy Note far more for reading than anything else. Very practical. I just read the Kindle when I am home.
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