Amazon CEO confirms Kindle sold 'at cost'

Last updated 17:17 12/10/2012
Jeff Bezos
Reuters

LAUNCH: Amazon CEO Jeff Bezos holds up the new Kindle Fire HD 7" and Kindle Fire HD 8.9".

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Amazon Chief Executive Jeff Bezos confirmed on Thursday that the online retailer sells its Kindle e-reader "at cost", with profit coming instead from sales of online content.

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.

Apple, by contrast, makes much of its profit from hardware sales. It sells a single-sized iPad at costs ranging from US$399 to US$829, depending on storage capacity, screen resolution and wireless connectivity.

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- Reuters

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