Amazon CEO Says Kindle Fire and Paperwhite Sales Earn No Profit

By emeadows
October 12, 2012

As Amazon launched its new Paperwhite e-reader and an associated book-lending scheme in the UK, Germany and France, CEO Jeff Bezos spoke on how the company makes no profit on hardware sales.
The Paperwhite is an e-ink powered device featuring a built-in light to put it in direct competition with Barnes & Noble’s Nook Glowlight and Kobo’s Glo.
“Amazon is seeking to distinguish its line-up by offering a subscription package that includes access to the Kindle Owners’ Lending Library,” writes BBC News.
That would allow for users to borrow up to one book per month from a variety of both famous authors and ones publishing their works through Amazon’s publishing system.
It is consumption like this, of books and movies and TV, that Bezos is counting on. He “made clear that the devices’ success would depend on how many books and other media files were subsequently bought by their owners,” notes the article.
“We want to make money when people use our devices, not when people buy our devices,” he said.
Amazon also wants physical sales. The Lending Library will be tied to the Amazon Prime price, so will include free and fast delivery from physical objects in the Amazon warehouses.

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