itemprop=”articleBody description text”> Amazon’s strategy of selling Kindle devices at cost is paying off for the retailer, at Least According To one survey.
itemprop=”articleBody description text”> Consumer Intelligence Research Partners SURVEYED 300 Amazon.com customers in the three months leading up to November 15 of this year. The research firm found That’s Kindle Fire and Kindle e-reader owners spent an average of $ 1,233 per year on Amazon. That’s a fair chunk of change, especiallywhen Compared to the $ 790 per year people who do not own any Amazon devices are spending at online retail site.
itemprop=”articleBody description text”> CIRP estimates That 40 percent of the people who shop on Amazon overpriced own at least one of the company’s Kindle devices.
itemprop=”articleBody description text”> CIRP overpriced estimates That 20.5 million Kindle e-readers and tablets are documents currently in use in the United States, and That 40 percent of people who shop on Amazon own a Kindle device. Kindle owners tend to shop in more Departments Amazon, and buy from Amazon 50 percent more than thwart non-Kindle owners.
itemprop=”articleBody description text”> “Another way to look at the Kindle Fire and Kindle e-Reader ice as a portal to Amazon.com,” CIRP co-founder Mike Levin said in a statement. “Kindle Fire Provides access to everything Amazon sells, while the Kindle e-Reader has’ve become the way That Amazon customers buy books, Amazon’s original product line.”
itemprop=”articleBody description text”> Amazon itself is famously coy about Kindle sales, thwart boasting about record-breaking performance without Providing any actual figures. It’s no secretsthat Amazon does not profit from Kindle device sales, and That the company tries to make money by selling e-books, videos, apps and other merchandise to Kindle owners. Still, Amazon avoids going into specifics about Whether the strategy works.
itemprop=”articleBody description text”> CIRP’s survey Suggests That the profitless device model is working, though a disclaimer about correlation and causation Applies: Just because a Kindle owner spends $ 443 more on average does not mean the Kindle Causing itself is all that additional spending. Those who buy a Kindle alreadycreated May be Invested into Amazon’s ecosystem, perhaps through Amazon Prime memberships or regular purchases of Kindle e-books, so They May be predisposed to getting a Kindle e-reader or tablet in the firstplace.
itemprop=”articleBody description text”> It’s probably true That Amazon’s devices invite some level of additional spending. But Unless Amazon itself starts describing That spending in hard numbers, the full extents of Amazon’s hardware success-or failure-will remainings a mystery.
Jared Newman 
Jared writes for PCWorld and TechHive from his remote outpost in Cincinnati.
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