Amazon’s Kindle lineup consists of fairly low price-points. Wall Street speculators over the past few years have even assumed that Amazon is profiting virtually nothing per unit sold. In an interview with BBC, Amazon Chief Executive Officer, Jeff Bezos, made it clear the online retailer sell its Kindle e-reader devices “at-cost.” This is the first time Amazon released information related to manufacturing costs of Kindle e-readers.
The aggressive price points are fairly attractive to the middle and low-class consumer in the market for a tablet. Bezo’s goal as the CEO is to sell its Kindles to customers and create profits from e-books, applications, and music. As long as customers continue to purchase Amazon-branded tablets, Bezo will remain satisfied.
For the sake of comparison, Amazon’s new Kindle Fire HD 8.9″ model sells for $299 while a third-generation 9.5″ iPad will run you $499. While both devices subsume similar hardware, the pricing of the iPad is far-fetched.