Wednesday 19 December 2012
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Amazon manager Jeff Bezos talks about the Amazon kindle Fire HD
"We sell the hardware at our cost, so it is break-even on the hardware," chief executive Jeff Bezos told the BBC. is a stark contrast to the strategy of best-selling tablet-maker Apple.
Mr Bezos made the comments as his firm launched its new Paperwhite e-reader and an associated book lending scheme in the UK, Germany and France.
The latest e-ink powered device features a built-in light that will help the firm compete against Barnes & Noble's Nook Glowlight and Kobo's Glo, which offer a similar feature.
Amazon is seeking to distinguish its line-up by offering a subscription package that includes access to the Kindle Owners' Lending Library.The service offers users the ability to borrow up to one book a month from a selection of titles including well known authors - such as JK Rowling - and writers who have published their works through Amazon's own publishing system.Kindle Paperwhite The Kindle Paperwhite has a 6in (15cm) screen and a built-in light
The UK service will include more than 200,000 ebooks at launch.
While other e-readers lack a matching facility, if they support the ePub format their owners can still borrow ebooks from their local library if it supports the OverDrive system.
Bigger appetites Deliveries of Amazon's Kindle Paperwhite will begin in Europe on 25 October, coinciding with the release of its 7in (18cm) Kindle Fire HD tablets.
Mr Bezos made clear that the devices' success would depend on how many books and other media files were subsequently bought by their owners."We want to make money when people use our devices, not when people buy our devices," he told the BBC.
By contrast Apple has indicated in the past that it makes much of its profits from device sales while running its iTunes store "slightly above" break-even.
Android tablet makers also rely on hardware sales. While Google provides their system software for free, the search giant keeps a cut of app and digital media sales made via its Google Play marketplace.Mr Bezos said that part of the reason his strategy worked was that users' appetite for media appeared to grow once they owned one of his devices.
Amazon manager Jeff Bezos talks about the Amazon kindle Fire HD
Mr Bezos made the comments as his firm launched its new Paperwhite e-reader and an associated book lending scheme in the UK, Germany and France.
The latest e-ink powered device features a built-in light that will help the firm compete against Barnes & Noble's Nook Glowlight and Kobo's Glo, which offer a similar feature.
Amazon is seeking to distinguish its line-up by offering a subscription package that includes access to the Kindle Owners' Lending Library.The service offers users the ability to borrow up to one book a month from a selection of titles including well known authors - such as JK Rowling - and writers who have published their works through Amazon's own publishing system.Kindle Paperwhite The Kindle Paperwhite has a 6in (15cm) screen and a built-in light
The UK service will include more than 200,000 ebooks at launch.
While other e-readers lack a matching facility, if they support the ePub format their owners can still borrow ebooks from their local library if it supports the OverDrive system.
Bigger appetites Deliveries of Amazon's Kindle Paperwhite will begin in Europe on 25 October, coinciding with the release of its 7in (18cm) Kindle Fire HD tablets.
Mr Bezos made clear that the devices' success would depend on how many books and other media files were subsequently bought by their owners."We want to make money when people use our devices, not when people buy our devices," he told the BBC.
By contrast Apple has indicated in the past that it makes much of its profits from device sales while running its iTunes store "slightly above" break-even.
Android tablet makers also rely on hardware sales. While Google provides their system software for free, the search giant keeps a cut of app and digital media sales made via its Google Play marketplace.Mr Bezos said that part of the reason his strategy worked was that users' appetite for media appeared to grow once they owned one of his devices.
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