Amazon’s CEO has declared that he wants his company’s devices or services in everyone’s pockets. Plus Bezos says that “People don’t want gadgets, they want services,”. A very interesting statement, one made to negate the likes of Apple and Samsung and even Nook, who are Amazon’s competitors in the tablet and e-reader market. According to this statement, consumers are not concerned how their device looks, instead they want a device that is fully functional and can add value to their lives. The concept of services has been highly reinforced and Amazon is a key promoter of services rather than devices.
Even more so in pricing category, the likes of Kindle Fire and Kindle readers are priced much lesser than its competition like the Apple iPad, which is priced at around $500. Amazon makes millions of dollars in service and content sales hence making less profit on hardware sale. That doesn’t mean that Amazon produces bad hardware. On the contrary the likes of Kindle Fire are excellent devices. But like Bezos pointed out; they don’t rake in as much cash as the vast content does. Bezos defends this approach by saying,
“And our approach is working — the $199 Kindle Fire HD is the #1 bestselling product across Amazon worldwide. Incredibly, this is true even as measured by unit sales. The next two bestselling products worldwide are our Kindle Paperwhite and our $69 Kindle. We’re selling more of each of these devices than the #4 bestselling product, book three of the Fifty Shades of Grey series.”
And he is not far off. This weekend thanks to Black Friday and Cyber Monday, the kindle sales shot through the roof. Already cheaper devices were put up on sale and consumer gobbled them up. Stats represent that Amazon sold nearly twice the products as compared to last year. And the top selling products include the Kindle Fire tab and Amazon’s e-readers.
“Kindle e-readers and Kindle Fires have held the top four spots on the Amazon worldwide best sellers list since launch, and that was before the busiest shopping weekend of the year,” Dave Limp, vice president of Amazon Kindle, said in a statement. “We’re excited that customers made this Black Friday and Cyber Monday the best ever for Kindle worldwide — Cyber Monday was the biggest day ever for Kindle sales.”
Bezos’s vision isn’t far off seeing the growth in the sales of Amazon and people are increasingly flocking towards Amazon. And with the prices of hardware decreasing day by day, we can see why people are gravitating towards the likes of Kindle Fire and Kindle reader.