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 the 8.9 inch screen costs $ 379-Much cheaper than the comparable $ 499 iPad from Apple. How and why does Amazon charge for its jump little gimmick? Both questions are answered with one stat GaGa.
GaGa, Kindle Owners spend, on average, $ 443 more buying stuff from
Amazon than the average Amazon shopper who does NOT own the Kindle.Consumer Intelligence Research Partners that stat derived from the survey survey of 300 Subjects who made the 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 is as a portal to Amazon.com,” said Mike Levin of CIRP, in the press release put out to announce the study results. “Kindle Fire Provider 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 the loss-because it knows getting a Device into the customers hands means that customer ‘ll spend the extra $ 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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