Friday, October 12

Jeff Bezos: Amazon Makes No Money On Sales Of Kindle Ereaders Or Tablets

Jeff Bezos: Amazon Makes No Money On Sales Of Kindle Ereaders Or Tablets

Jeff Bezos, CEO of Amazon, recently confirmed what I'd always assumed, that Amazon doesn't make any money on its ereaders or tablets. Bezos said:
"We want to make money when people use our devices, not when people buy our devices."
This differs markedly from Apple's strategy. My question: Can it work? I've always wondered how much more, on average, a consumer buys through Amazon after purchasing an ereader or tablet.

Well, now I know! Bezos remarked that "users' appetite for media appeared to grow once they owned one of his devices." (Is it just me, or does that sound ominous? Makes me think of alien mind-altering technology. You will buy more. No? Just me? Okay ...)
"What we find is that when people buy a Kindle they read four times as much as they did before they bought the Kindle.

"But they don't stop buying paper books. Kindle owners read four times as much, but they continue to buy both types of books."
People read four times as much! Wow.

Read the entire BBC article here: Kindle Fire HD and Paperwhite sales make Amazon no profit.

Thanks to PG for mentioning it.

Other articles you might like:
- Kristen Lamb: Don't Let Trolls Make You Crazy
- How To Format A Word Document For Amazon's KDP Publishing Program
- Penelope Trunk Discusses Time Management

Photo credit: James Duncan Davidson from Portland, USA

3 comments:

  1. Hi Karen,
    I can't believe kindle readers read 4x as much. This is a really interesting post. I was looking for the one I last commented on to answer your question. I write historical/political/lit fiction but want to branch out.

    ReplyDelete
    Replies
    1. Thanks FC, and best of luck! I hope blogger didn't eat one of your comments. Sometimes I think we should start calling it gobbler.com. :p

      Thanks for stopping by.

      Delete
  2. My experience with the Kindle invalidates Bezos's claim. I read 10x as much on Kindle as I read on spines.

    ReplyDelete

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