This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bezos: Kindle, Paperwhite Make No Profit

NEW YORK (TheStreet) - Every time Amazon (AMZN) announces a new Kindle tablet or e-book reader there are experts who believe the company is selling those hardware products as a loss-leader to get customers to buy lots of books, music and apps to fill up device memory. Today, Amazon's boss put half of that rumor to rest.

Amazon CEO Jeff Bezos, in an interview with the BBC, said his company's Kindle Fire and Paperwhite book reader make no profit. But, he insists that they do break even.

Bezos was interviewed at the launch of the company's new e-Ink-powered Paperwhite reader in the U.K., France and Germany.

The Amazon supremo believes his company's subscription services are the big difference. Especially the Kindle Lending Library. That's where you can borrow (up to) one book a month from a group of specially-selected titles. The Paperwhite's biggest competition comes from the similar Barnes & Noble (BKS) Nook Glowlight and the Kobo Glo.

He told the BBC: "We want to make money when people use our devices not when people buy our devices." That's the polar opposite of how Apple (AAPL) markets its goods and services. The Cupertino, Calif.-based firm has indicated that much of its profits come from hardware sales while its iTunes store operates at "slightly above break even." Manufacturers making devices that run on Google's (GOOG) Android OS depend on hardware profits as well.

Bezos boasted that Kindle fans also read more books of all kinds. He told the BBC that Kindle owners read four times as many books - electronic and paper editions - as non-Kindle owners.

European deliveries of Amazon's new Paperwhite e-reader begin in two weeks.

--Written by Gary Krakow in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

Gary Krakow is TheStreet's senior technology correspondent.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs