Friday, October 12, 2012

Amazon doesn't make profit from its Kindle's.

Amazon Confirms It Sells Kindles at Cost

Posted 3 hours ago

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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