2023 Author: Gordon Kinson | [email protected]. Last modified: 2023-11-26 08:36
Recently, the president of Amazon - Jeff Bezos (Jeff Bezos) - announced that the Kindle Fire tablets are sold at cost. Such rumors have been circulating for a long time, but now they have received their official confirmation. What is the point in selling tablets at cost?
And the point is that the main income of Amazon is content (books, videos, audio, etc.). While tablets and e-books are just a way to distribute this content. Thus, the company sets very attractive prices for its devices in order to then make money on content sales.
The most interesting thing is that if you compare Amazon with Apple, then the latter has a completely different arrangement - Apple earns very little (if we take into account the size of the company) from selling applications and various content. it is created only in order to successfully promote the devices on which the company makes huge money.
Thus, Amazon creates devices to sell content, and Apple creates content to sell devices. Most importantly, both of these strategies are still working. We talked about how they work in one of the previous articles.
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