Saturday, 13 October 2012

No Hardware Profit for Amazon on Kindle Fire HD and Kindle Paperwhite

 Do you remember when we first analyzed the original Kindle Fire HD cost analyses we did back in March? It was quite a long time ago, but what we said still stands. Amazon doesn't plan on making money by selling the device itself, they plan on making money from the content they sell through their online store. All of this has been proven by the official reports from Amazon receantly.

 Quite often, technology products and gadgets are sold at break even, or with a slight loss. How is the money made then? Money is made off services and accessories, which come with the products.  “We sell the hardware at our cost, so it is break-even on the hardware”, said Amazon chief executive Jeff Bezos, referring to Kindle Fire HD and Kindle Paperwhite. Kindle Fire HD tablet and Kindle Paperwhite eReader will be launched in Europe on October 25.

 Amazon has been making money off digital content and not from the devices  for quite a while now and they believe that this tactic works perfectly well for them . Therefore, they are applying it this time too.  They are also assured that Kindle users read 4 times more than they read before they buy Kindle device.
Kindle users in the UK, Germany and France will be able to access the Kindle Owners Leaning Library. This allows them to borrow up a certain book from a great selection of titles. Users can borrow up one book per month and it is free. The UK service will feature 200,000 books, and users will be able to find some very famous books in the library.

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