That Cheap Kindle Costs You $443 a Year

New research finds Kindle owners spend more on Amazon

By Evann Gastaldo,  Newser Staff

Posted Dec 16, 2013 12:07 PM CST | Updated Dec 21, 2013 1:00 PM CST

(Newser) – Why is Amazon willing to sell its Kindles so cheaply that they make no profit—or even lose money? Easy: Kindle owners end up spending more money on Amazon, Time reports. New research from the Consumer Intelligent Research Partners finds that Amazon members who don't own a Kindle spend $790 on the site each year, while Kindle owners spend $443 more, for a total of $1,233 per year. Says CIRP's co-founder, "Another way to look at Kindle Fire and Kindle e-Reader is as a portal to Amazon.com." Want to get a little of that back? Over at Slate, Matt Yglesias has figured out a loophole involving a fake baby.

In this Sept. 28, 2011 file photo, the Kindle Fire is displayed at a news conference, in New York.
In this Sept. 28, 2011 file photo, the Kindle Fire is displayed at a news conference, in New York.   (AP Photo/Mark Lennihan, File)
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