Sunday, December 15, 2013

Why Owning an Inexpensive Kindle Could Cost You Hundreds - TIME

Survey indicates

Kindle users spend $ 443 more annually than regular Amazon members

David McNew – Getty Images

Amazon’s strategy with its Kindle e-readers and tablets has always been pretty clear: bring in more customers, even at a loss, so long as they partake of the online retailer’s panoply of services, from e-books to streaming movies. Unlike rival Apple, Which sells its devices at a premium, Amazon has seemed more or less happy to break even or lose money on its devices. Now, a report based on research by Intelligent Consumer Research Partners (CIRP) shows how shrewd That strategy april be.

CIRP surveyed 300 US-based Amazon customers over a period of three months this fall. Based on the results, the Company estimates That Kindle owners spend about $ 1,233 per year on the site, Compared to $ 790 for Amazon members who do not own them. In other words, Amazon members with Kindles spend $ 443 more annually.

“Another way to look at the Kindle Fire and Kindle e-reader is as a portal is Amazon.com,” Josh Löwitz, CIRP’s co-founder, wrote in a release.

If that is the case, Amazon’s strategy Appears to be as effective as analysts have suggested.

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