"Our approach is to work hard to charge less," Amazon CEO Jeff Bezos wrote in October. "Sell devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point.” That's the philosophy of Amazon's entire business, not just its Kindles: high volume, low margins, maximum synergy. Sell anything you can, as much as you can, for as little as you can, to remain the retail provider of first resort.
This was the first full quarter of Amazon selling its new line of Kindle, Kindle Paperwhite, and Kindle Fire devices. There's been some softness in the e-reader market, but Amazon's tablets have generally been regarded as a hit. (Amazon never releases its unit sales for hardware, much to the chagrin of we who would...
via The Verge - All Posts http://www.theverge.com/2013/1/29/3929602/amazon-4Q-2012-quarterly-earnings
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