In January Amazon offered select customers a free Kindle of sorts – they had to pay for it, but if they didn’t like it they could get a full refund and keep the device. It turns out that was just a test run for a much more ambitious program. A reliable source tells us Amazon wants to give a free Kindle to every Amazon Prime subscriber.
Just as soon as they can work out how to do it without losing money.
Amazon Prime is a subscription product that gives customers free two day shipping on everything they buy from Amazon. The current fee is $79/year.
These are Amazon’s very best customers – the ones who tend to make multiple purchases per month. And they are also likely to buy multiple books per month on their Kindle devices. If those users buy enough books, and Amazon gets the production costs of the Kindle down enough, Amazon can get Kindles into “millions” of people’s hands without losing their shirt. At least when the goal is to break even or better over the course of a couple of years, the expected lifetime of a Kindle.
Introduced in November 2007, Kindle is an e-reader developed by Amazon.com to allow easy access to a vast library of electronic books to be downloaded and read on the device. Over 90,000 books were available for download at launch; that catalog grew to over 160,000 by August 2008 and was growing by over 25,000 titles per month. Books, newspapers, magazines and blogs are loaded onto the device wirelessly via Amazon’s free EVDO network (called WhisperNet) and are published in...
Amazon.com, Inc. (AMZN), is a leading global Internet company and one of the most trafficked Internet retail destinations worldwide. Amazon is one of the first companies to sell products deep into the long tail by housing them in numerous warehouses and distributing products from many partner companies. Amazon directly sells or acts as a platform for the sale of a broad range of products. These include books, music, videos, consumer electronics, clothing and household products. The majority of Amazon’s...
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