Amazon And Free Stuff

Originally posted on Uncrunched:

I’m reading Amir Efrati and Jessica Lessin’s article about Amazon toying with the idea of giving a free smartphone to people.

Of course there’s a real issue here with the cost of the device: “Offering a phone for free would be a daunting proposition. Amazon would have to find a way to make up for the cost of manufacturing — on average, $200 per smartphone.”

In 2010 I had a good source saying that Amazon was trying to figure out how to give a free Kindle to its Amazon Prime members – the best and most loyal Amazon customers who pay a yearly fee for free shipping and (now) premium digital content.

They had the same problem then – they’d do it, said my source, “Just as soon as they can work out how to do it without losing money.”

I’m not sure they’ll ever figure it out. Hardware costs…

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