Amazon Confirms It Sells Kindles at Cost

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Posted October 12, 2012 at 2:22pm by iClarified

Amazon CEO Jeff Bezos confirmed that his conpany is selling its Kindle e-reader "at cost" with profits coming from the sales of online content, according to Reuters.

Bezos' remarks, in an interview with the BBC, marked the first time the company had confirmed long-held Wall Street assumptions that it did not make a profit on sales of the popular tablet.

The aggressive pricing furthers Bezos' goal of getting Kindle tablets into the hands of as many buyers of Amazon's online content -- from games and books to video -- as possible.

This technique has allowed Amazon to enter the tablet market fairly quickly and undercut most competition. The company recently announced a 8.9-inch Kindle Fire HD tablet.

Apple, on the other hand, makes much of its profit from hardware sales. The company is said to be announcing an iPad mini on October 23rd which would have a lower price tag than its big brother.

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Amazon Confirms It Sells Kindles at Cost

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Blackapino - October 15, 2012 at 11:54am

I love my iMac & I'm glad i switched from the PC to a BETTER computer experience because it IS..and if i remember correctly i've seen some pretty pricey PC Labtops so BEORE you shoot your mouth off...why don't ya take a look @ places like Best Buy,Dell,HP,Toshiba and Alienware along a FEW OTHERS. Yeah they ALL have pricey laptops & Desktops & PLEASE don't insult my intelligence that someone how they have to keep UP with Apple.

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teddy - October 12, 2012 at 6:49pm

crapple policy is to screw customers on hardware which either delivers no content or delivers ovepriced content accessible for free for non crapple users

cciev - October 12, 2012 at 4:19pm

You are definitely Apple then