Amazon makes a pretty good case for its
Kindle Fire HD and
Paperwhite with prices as low as
$199 and
$119 respectively, but it turns out there's more at work than just
special offers to keep them affordable. In an interview with the BBC, the company's head honcho Jeff Bezos revealed that they can keep the price tags reasonable since they don't turn a profit on the devices. "Basically, we sell the hardware at our cost, so it is break even on the hardware," Bezos said. "We're not trying to make money on the hardware." Instead, Amazon banks on making a buck when owners of the slates and e-readers purchase
books,
movies,
games and other content through their digital storefront. This doesn't exactly come as a surprise, but we're glad that Jeff's confirmed our suspicions.
BBC
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