Amazon CEO confirms Kindle sold at cost

Aggressive pricing furthers Bezos' goal of getting tablets into hands of buyers of online content.

Written by Agencies | Published: October 12, 2012 11:24:11 am

Amazon Chief Executive Jeff Bezos confirmed on Thursday that the online retailer sells its Kindle e-reader at cost,with profit coming instead from sales of online content.

Bezos’ remarks in an interview,marked the first time the company had confirmed long-held Wall Street assumptions that it did not make a profit on sales of the popular tablet.

The aggressive pricing furthers Bezos’ goal of getting Kindle tablets into the hands of as many buyers of Amazon’s online content — from games and books to video — as possible.

Apple,by contrast,makes much of its profit from hardware sales. It sells a single-sized iPad at costs ranging from $399 to $829,depending on storage capacity,screen resolution and wireless connectivity.

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