Digital Spy

Search Digital Spy
3

Tech News

Amazon 'makes no profit' on Kindle hardware

By
Amazon has claimed that it will make no profit from sales of its latest Kindle hardware.

The online retailer told BBC News that it will break even on the Kindle Fire HD tablet and Kindle Paperwhite because it only wants to make money when customers use its devices.

The Kindle Paperwhite

© Amazon

Amazon Kindle Fire

© PA Images / Mark Lennihan/AP



"We sell the hardware at our cost, so it is break-even on the hardware," said chief executive Jeff Bezos. "We want to make money when people use our devices, not when people buy our devices."

The revelation coincides with Amazon's announcement that the Kindle Paperwhite will be released in Britain this month. The firm also opened up its 200,000 book-strong Lending Library subscription service to UK Kindle owners today (October 12).

Amazon's strategy is the binary opposite to that of Apple's, who generate the majority of their revenue from hardware sales while making only a small profit from iTunes.

The Paperwhite offers up to eight weeks of battery life and is priced from £109 for the WiFi version or £169 for the WiFi and 3G model. The product will begin shipping on October 25.

To access the Lending Library, consumers must sign up for an Amazon Prime membership, which costs £49 per year and gives users discounted delivery on products bought from the firm's website.

You May Like

Comments

Loading...