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Amazon makes no profit on Kindle Fire HD, Paperwhite, Bezos says

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Amazon Chief Executive Jeff Bezos confirmed that the online retail giant makes no profit on its new Kindle tablet and e-readers.

Bezos told the BBC that Amazon sells the new Kindle Fire HD tablets as well as the Kindle Paperwhite e-reader at the company’s cost.

This is because Amazon is relying on the sales of digital content to make money.

Bezos said that once users have e-readers or tablets, they purchase more digital content than they did before.

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“We want to make money when people use our devices, not when people buy our devices,” Bezos said. He also said: “What we find is that when people buy a Kindle they read four times as much as they did before they bought the Kindle.”

Additionally, Amazon’s Kindle sales can also help its sales of physical products.

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