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Free Kindle This November

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1–10 of 105 posts

Re: Free Kindle This November

#4
Makes sense. Like game consoles, they make the money on the content.

But, unlike consoles, provided a kindle doesn't need the latest, fastest technology, they can keep getting cheaper, til it's negligible relative to the benefits of acquiring a customer.

Re: Free Kindle This November

#6
By this logic, Amazon will pay you to take a Kindle by the start of next year.

Amazon makes future money on Kindle owners because they're avid book readers and they buy a lot of eBooks. If Amazon were to give away Kindles for free a lot of non-avid readers would pick them up just to have one, which would kill the model. I think a $99 price point (maybe $49 with Prime) makes a lot more sense.

Re: Free Kindle This November

#7
A classic loss leader strategy. Given how much Amazon Prime increases Amazon purchase behavior, this makes all sorts of sense if the cost per unit goes down enough.

Details about how Amazon Prime affects purchasing behavior: http://www.quora.com/Who-invented-Amazon-Prime-What-impact-h...

Re: Free Kindle This November

#10
post #6

By this logic, Amazon will pay you to take a Kindle by the start of next year. Amazon makes future money on Kindle owners because they're avid book readers and they buy a lot of eBooks. If Amazon were to give away Kindles for free a lot of non-avid readers would pick them up just to have one, which would kill the model. I think a $99 price point (maybe $49 with Prime) makes a lot more sense.

Yes but if it is only free with an Amazon Prime account, Amazon gets many more customers. If it is $49 without Prime then many people may just go Prime and Amazon really wins either way.
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