The Amazon’s Kindle Fire HD has joined the fierce competition of tablets; fighting alongside Apple, Asus, Samsung, and etc. But what makes the Kindle Fire HD so special is that not only a tablet but it is an affordable tablet. Amazon has implemented a strategy that no other companies would dream of doing. Amazon’s CEO Jeff Bezos acknowledged that they are selling their Kindles at cost; which means that they are not making profit off each Kindle they sell. However, what Amazon is doing is they want to as many consumers to buy their Kindles by keeping the prices low. In turn, their profit will come from selling their Kindle books, videos, and games. With this approach, Amazon is measuring the Kindle’s success by the amount of content Kindle owners buy on them.
Is Amazon playing a risky move by executing this strategy?
As a consumer, do you favor this strategy?
Do you think Amazon can stay in the tablet competition?
Would you purchase the Kindle Fire HD?