London, Oct. 12: American multinational e-commerce company Amazon has confirmed that it will not make a profit from sales of its latest Kindle tablet and e-reader devices.
“We sell the hardware at our cost, so it is break-even on the hardware,” chief executive Jeff Bezos told the BBC.
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, which come in stark contrast to the strategy of best-selling tablet-maker Apple.
The latest Kindle Paperwhite e-ink powered device features a built-in light that will help the firm compete against Barnes and Noble’s Nook Glowlight and Kobo’s Glo, which offer a similar feature.
According to the report, Amazon is seeking to distinguish its line-up by offering a subscription package that includes access to the Kindle Owners’ Lending Library, which 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.
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 said.
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. (ANI)