Thursday, September 6, 2012

Kindle Fire HD: Amazon's anti-Apple profit engine


Amazon CEO Jeff Bezos at the Kindle event today.


(Credit: James Martin/CNET)

Amazon CEO Jeff Bezos may model his presentation skills after the late Steve Jobs, but his company's business model looks more like the Bizarro version of Apple.


Take today's announcement of several new Kindle Fire tablets, as well as a discount to the original. Amazon is hardly making a large profit on these competitively priced products, something Bezos is quick to own up to. "We want to make money when people use our devices, not when they buy our devices," he said during an event in Los Angeles today. The three versions of the Kindle Fire HD represent an expansion of the company's strategy with the original Kindle Fire: Amazon worries about getting the tablets into the hands of its consumers first, and then focuses on making money off of the services and products it can deliver to them later. While Bezos denies this is the razor-and-razor-blade model, it's actually an apt analogy.

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