Wed, 17 Oct 2012

4:52 AM - Kindle Has Zero Profit? True or false?

Recently, according to the reports, Amazon CEO Jeff Bezos said in an interview that as for the two products - Kindle Paperwhite and Kindle Fire HD, and even any previous Kindle devices, Amazon is almost always unprofitable. In other words, the product price is almost fairly with the produced costs. This argument may not convince the majority of consumers, however, from the cases that many Internet companies use the way of sending hardware to sell software, there is some truth in the zero profits of Amazon hardware products. Kindle Fire related: add watermark to dvd video for Kindle Fire on Mac.


 

The media said that the zero profits hardware strategy of Amazon is very different from Apple's market approach, because the iPhone and iPad let Apple earn a lot. However, Amazon's this strategy is not uncommon in the market. For example, consoles Xbox 360 and the PS3 almost have no profits, the real money come from games and game console peripherals. Although you can not reach like apple, both sell software and hardware to make money, but in terms of the way, through this hardware zero profit mode, just like the Amazon provides a hand pushing shopping cart for everyone, the Kindle Tablet is responsible for playing a role of such trolleys.
 

It is understood that, Amazon said they are more concerned about whether consumers will continue to use the Kindle, rather than whether consumers will buy the Kindle. And it is still continuing to introduce new Kindles. What's more about Kindle Fire: convert mkv for playing on Kindle Fire.
 

Of course, there are comments that the iPad has occupied more than 90% of the global tablet market, even the Kindle really want to make money, it is not so easy.

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