Wednesday, September 25, 2013

Bezos: New Kindle won't make money, and that's OK - CNBC.com

Amazon.com is launching a new version of its Kindle Fire tablet—but with an unusual twist for the market that might leave consumers scratching their heads.

Amazon’s upcoming high-end tablet, the Kindle Fire HDX, will pack a bunch of new features, including one called Mayday that will allow users to video chat with tech support and fix their devices from wherever they are.

“You can press this button, and a tech support advisor will appear on your screen and copilot you through anything you might wanna do. They can draw on your screen, show you how to do things,” Bezos told CNBC.

The 8.9-inch tablet will also have a high-res screen and an 8-megapixel camera on board.

But that catch? A price hike from $ 299 to $ 379, which is about a 25% increase.

Despite the jump, Bezos said Amazon does not make money on the devices themselves, but the company does hope they will usher users toward Amazon’s main business: creating and delivering digital content, like Kindle e-books, movies, TV shows, and music.

“We think we’re better aligned with our customers if we make money when people use our devices, not when they buy them,” he said.

For those for whom the new Kindle may be a bit too rich, Bezos said the $ 139 Kindle Fire HD will now come with the high-res screen found on last year’s top-shelf model.

(Read more: Kindle MatchBook lets you buy e-books of your Amazon books)

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