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Old 10-11-2012, 09:28 PM
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Default Amazon sells Kindle devices at cost in order to push digital content



Speaking to the BBC, Amazon Chief Executive Officer Jeff Bezos revealed that the online retailing giant doesn’t make a profit on sales of its inexpensive and wildly popular Kindle devices. Of course, this isn’t much of a surprise, given Amazon’s business strategy.

From a sales perspective, Amazon’s Kindle and Kindle Paperwhite devices are nothing more than storefronts for Amazon’s Kindle eBook bookstore. The Kindle Fire and new Kindle Fire HD take this strategy a step further, pushing content from all of the company’s digital media services like Amazon Instant Video, Amazon MP3, Kindle, Audible, and the Amazon Appstore for Android. This is where Amazon makes the real money, so by selling Kindle devices at cost, the retailer is only making it that much easier for customers to get their hands on Amazon’s content.

Do you think Google is pursuing the same strategy with the similar Nexus 7 tablet?

[BBC via Gizmodo]
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Old 10-11-2012, 09:45 PM
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They might make more money selling the kindle fire hd as a normal android tablet. I personally couldn't stand the amazon aspect of it.. I returned it within a few days and ended up with a samsung galaxy tab 2, at least it is expandable.
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Old 10-12-2012, 07:05 AM
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Pretty much every serious review of the Kindle HD concludes that it's garbage and you have to wade through so much Amazon rubbish.
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Old 10-12-2012, 08:18 AM
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Amazon sells Kindle devices at cost in order to push digital content

This is nothing new, mobile network providers have been selling handsets below cost for over 20 years w/service contract. It makes sense, sell the hardware at cost or below and make the profit on the service/content. Although in the case of the tablet, once someone hacks it you don’t need their content exclusively.
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Old 10-12-2012, 08:37 AM
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Quote:
Originally Posted by WalkGood View Post
Amazon sells Kindle devices at cost in order to push digital content

This is nothing new, mobile network providers have been selling handsets below cost for over 20 years w/service contract. It makes sense, sell the hardware at cost or below and make the profit on the service/content. Although in the case of the tablet, once someone hacks it you don’t need their content exclusively.
Even then, it is still a fail without memory expansion , since it doesn't have much internal memory....unless you use the cloud, which I sure don't....lol.
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Old 10-12-2012, 01:00 PM
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Originally Posted by Marvin the Martian View Post
Even then, it is still a fail without memory expansion , since it doesn't have much internal memory....unless you use the cloud, which I sure don't....lol.
I was only addressing the quote “Amazon sells Kindle devices at cost in order to push digital content.” Personally I don't have a need for a tablet, I prefer a real keyboard and f**k the cloud
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Old 10-22-2012, 03:07 AM
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I like my Kindle and I think it's great. It is closed but it's cheap to so I don't mind. I buy a lot off of Amazon and I think it's great watching how they shake up the low end of the Tablet market. For $150.00 I wouldn't think twice about getting the base model Fire if I was into tablets, just not into those.
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