Friday, October 12, 2012

Amazon CEO Jeff Bezos Confirms Strategy: No Profit on Kindles, Money From Content

Amazon CEO Jeff Bezos recently confirmed Amazon's hardware strategy, namely that it sells devices at "no profit" in expectations it will create new revenue streams based on the sale of content.

"We sell the hardware at our cost, so it is break-even on the hardware," Bezos said. Apple does the reverse, selling content at minimal or low profit as a way of selling more devices, where it makes its money. 


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