Amazon Makes No Profit on Kindles

 By 
Seth Fiegerman
 on 
Amazon Makes No Profit on Kindles
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Amazon doesn't make a dime in profit from sales of its Kindle e-readers and tablets, according to the company's founder and CEO Jeff Bezos.

"We sell the hardware at cost," Bezos told the BBC in an interview published Thursday. "We want to make money when people use our devices, not when they buy them."

The statement from Bezos confirms a long-held assumption that Amazon breaks even -- rather than profits -- on sales of its hardware. In fact, previous estimates have suggested that Amazon might even sell some of its Kindle products at a slight loss.

For Amazon, the Kindle is seen as more of a gateway to the many products sold by the website, including e-books, movies and apps. Indeed, Bezos has said repeatedly over the years that Amazon's business model is to survive on slim profits.

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