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Old 10-11-2012, 09:28 PM
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Master Devwi Master Devwi is offline
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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 doesnít make a profit on sales of its inexpensive and wildly popular Kindle devices. Of course, this isnít much of a surprise, given Amazonís business strategy.

From a sales perspective, Amazonís Kindle and Kindle Paperwhite devices are nothing more than storefronts for Amazonís Kindle eBook bookstore. The Kindle Fire and new Kindle Fire HD take this strategy a step further, pushing content from all of the companyís 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 Amazonís content.

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

[BBC via Gizmodo]
Microsoft Xbox MVP. Long live Zune!
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