This is why Amazon will soar in the smartphone market


According to a brand new study from Consumer Intelligence Research Partners, those Amazon customers who own a Kindle spend $1,223 on Amazon products annually. Amazon customers without the tablet spend “just” $790 annually. This $443 gap means that Amazon’s strategy of selling Kindle Fire tablets at near zero margins is working like a charm. Keeping the Kindle device pricing low is creating an army of consumers who are spending freely on Amazon products. In the light of these numbers, it could make perfect sense for Amazon to not only sell its tablets at zero margins, but maybe even below cost.

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