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[BBC]Kindle Fire HD and Paperwhite sales make Amazon no profit

post #1 of 9
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Quote:


Amazon has confirmed it will not make a profit from sales of its latest Kindle tablet and e-reader devices.

"We sell the hardware at our cost, so it is break-even on the hardware," chief executive Jeff Bezos told the BBC.

It is a stark contrast to the strategy of best-selling tablet-maker Apple.


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post #2 of 9
Hm - hardware wise then I have to assume they are using rather expensive subcontractor ? There is pretty good comparison table of the 7'' tablets here in OCN at http://www.overclock.net/t/1286810/comparison-of-best-7-tablets and I got approx the same hardware wise from a "china tablet" for 120 euros (including shipping), well no built in GPS but had an SD card slot instead and a full GPS chip itself costs like about 10 - 15$ (I Ordered myself bluetooth GPS logger), hell you can get a GPS bluetooth keychain for about 15$ from ebay.
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post #3 of 9
Most people already got a Nexus 7. Why would they get a kindle fire HD then?
post #4 of 9
@above

They released them for media delivery through their different services. Amazon didn't expect to make money on the actual devices. This was discussed when the Fire came out. This is just official confirmation I guess.
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post #5 of 9
Quote:
Originally Posted by Capt View Post

Most people already got a Nexus 7. Why would they get a kindle fire HD then?
"Most" people don't already have a Nexus 7. As someone that already has a TF101, I'm excited to get my 8.9" HD because then I can finally have good Amazon services deliver and a fairly standardize OS and app experience vs. the "wild" Android ecosystem. Cut-down version of Android doesn't bother me if it works as it should without the numerous headaches I've had with my TF101...
post #6 of 9
When you have a paper or Kindle ... where do you buy your reads? The cheapest place. Usually amazon for at least a portion of the books you have on the device. I think Amazon's corporate policy models how businesses were originally designed to work, in the long run they end up benefiting consumers AND the company. tongue.gif
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post #7 of 9
Didn't everyone already know this? tongue.gif. They never meant to make a profit from the hardware, just the books.
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post #8 of 9
Amazon is far from the nexus 7 .i own a kindle fire (1)and its nowhere near android .and the fact google will update it longer then amazon is a given mmy fire received 6.3.1 since that latest nothing .only the full os version are worthy
post #9 of 9
Quote:
Originally Posted by FlashFir View Post

When you have a paper or Kindle ... where do you buy your reads? The cheapest place. Usually amazon for at least a portion of the books you have on the device. I think Amazon's corporate policy models how businesses were originally designed to work, in the long run they end up benefiting consumers AND the company. tongue.gif

Pretty much, read the article before you knee-jerk(not directed at you). They help lock people into Amazon's ecosystem. Buy a Fire get Prime for their instant video service. Then you order physical products for free shipping and deals. They have lower margins due to shipping and deals, but make up for it in volume and subscription Prime service. Buy an occasional book or rent non Prime instant video profit for Amazon. Any permutation of above.. summary of article.

Edit Meant to quote Crazy9000, but whatever. That works too.
Edited by Genzel - 10/16/12 at 6:56pm
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