This post originally Appeared in Business Insider.
These days, you can buy a new Kindle e-reader from Amazon for $ 49. Meanwhile, Amazon’s Kindle Fire HDX with an 8.9 inch screen costs $ 379, much cheaper than a $ 499 iPad from Apple ie the comparable. How and why does Amazon charge so little for its gadgets? Both questions are answered with one single stat.
During a single year, Kindle owners spend, on average, $ 443 more buying stuff from Amazon than the average Amazon shopper who does not own a Kindle.
Consumer Intelligence Research Partners That stat derived from a survey survey of 300 subjects who made a purchase at Amazon.com in the three-month period ending November 15, 2013. CIRP estimates That Amazon Kindle device owners spend Approximately $ 1.233 per year buy stuff from Amazon, Compared to $ 790 per year for other customers.
“Another way to look at Kindle Fire and Kindle e-Reader as a portal to Amazon.com,” said Mike Levin of CIRP, in a press release put out to announce the study results. “Kindle Fire Provides access to everything Amazon sells, while Kindle e-reader has become the way That Amazon customers buy books, Amazon’s original product line.”
Amazon sells Kindles cheap-perhaps at a loss Because it knows getting a device into a customers hands Means That customer will spend an additional $ 4.500 at Amazon over the next 10 years.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions
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