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.
“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.