Why are Amazon's Kindles so cheap?

  • Amazon sells its Kindles so cheaply for a simple reason: Its users end up spending a ton of money on Amazon. 

    New research indicates that those who own Kindle spend $443 more on Amazon than those who don't. 

    "Another way to look at Kindle Fire and Kindle e-Reader is as a portal to Amazon.com," the Consumer Intelligent Research Partners co-founder said. 

    CIRP surveyed 300 customers in the U.S. and its findings have indicated that Amazon's strategy is quite shrewd and appears to be effective. 

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