Kindle Why so inexpensive? - ALT1040

By Eduardo Marin

December 18, 2013, 01:03 AM

class=”categorias Topics: Advertising and Marketing Technology

When we talk about

gadgets all have one or some that are our favorites, “we can not live without them” and the most versatile, useful and practical to accompany us or yes in our day to day. For some it is an iPhone or any smartphone to a laptop or other iPod, but for many, very many, is a Kindle . The device designed to carry an entire library to all parties in the comfort of your backpack or purse, has been one of the biggest hits (among many) Amazon , but for some strategy is misunderstood.

Mr. Jeff Bezos is, without me is nothing left inside a genius markets , if such a thing exists. The founder of Amazon that can boast of being an inventor also has had a long achievement, but when his adventure began a “virtual commissary” was also misunderstood, so that today Amazon is the undisputed leader in its market and a multimillion dollar company.

That was in 2007 when Bezos first introduced us Kindle , promising to be the ideal and perfect device that would forever change the world of publishing and sounds exaggerated. Today as many ebooks as physical (and care no more) are sold, and even controversial cases were generated monopoly and between publishers and some companies.

presentation Kindle Paperwhite (2012)

Kindle changed many things, changed the way we read, offering a wonderful e-ink screen that closely resembles the traditional role, and promising that a device (then ) about $ 400 price, could carry hundreds of books and texts.

A complete library on $ 50

But even $ 400 was something relatively inexpensive for what promised Kindle, for about two or three years ago the star Amazon device (because yes it is) has come to cost too little for what it offers. Does Jeff Bezos went crazy Today you can buy a Kindle for $ to 50 , and for just over $ 100 one of these wonderful objects of desire for every lover of literature called Kindle Paperwhite , which is nothing more than a Kindle with the screen light does not disturb the view (the perfect formula).

As I said, the Kindle is now misunderstood. Many do not understand how it is possible that a device of this type can be sold for just $ 50, with losses even in terms of manufacturing, especially when we talk about the new type of Kindle, Amazon’s tablet: Kindle Fire .

With Kindle, Amazon bets on short, medium and long term Let’s not talk about technical characteristics, capabilities or applications, or hardware, or anything like that. The fact is that the Kindle Fire is a tablet it costs much less than an average tablet (without taking into account other as Nexus 7, the end of the day, follow the same business model). While with $ 150 you can purchase a Kindle Fire, you need about $ 250 to buy an iPad or one of the dozens of versions of Samsung Galaxy tablets in the world.

Why Kindle devices are so cheap Now let’s talk about e-book reader or tablet, in Business Insider have certain statistics that are the clearest answer to the question that opened this note:

In just one year, people who have a Kindle on average spent $ 443 more on Amazon purchases to the person who has a Kindle.

Thus, we can summarize that the Kindle are portals to buy on Amazon, are devices that invite you to it. A sell cares Bezos Kindle so that people buy more . Strategy? Dirty? Not at all. It’s just a wonderful business model that commitment because content and devices or gadgets as attractive as this will serve as intermediaries between the buyer and the web selling products. As long as the person wants, since Kindle really not forcing you to buy anything you do not want .

Google and Amazon follow the same pattern in their gadgets

betting business model for the content and make the device and bridge the intermediary between the user and the purchase of products or services (with your credit card as a vehicle) is the way in which Google is also working. So I explained and I justified the price of the Nexus 4 after its release, and even I dared to draw Amazon as the real enemy of Google .

Facilitate the user

content acquisition through your products always give good results. It is the reason that the Amazon Kindle so inexpensive. You bet on the long term. The above study clarifies how in 10 years of Kindle user spends $ 4,500 more than a user without a Kindle, shopping apps, digital content or just anything in the titan internet shopping.

What matters then lose a few dollars or gain nothing by selling a gadget that will bring you much income? Nothing, and Bezos is very clear.