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".

Relevant offers

Gadgets

Sapphire screen unlikely for iPhone 6 Kiwi rocket company ready to blast off Sneak peek at Microsoft's 'selfie' phone Amazon opens 3D printing store US 'neighbourhood watch' satellites take off Will resticting drones hurt research? Beats sued over noise-cancelling patent 'Dronies' take-off creating aerial headaches iPhones extract deep personal data Has the iPad already passed its peak?

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.

Ad Feedback

- Reuters

Special offers

Featured Promotions

Sponsored Content