Monday, September 10, 2012
Making Money While Keeping Prices Low: Amazon CEO Jeff Bezos Explains It All (Mostly)
The Big Picture.
Amazon rolled out a new family of Kindle devices today at a press conference in Santa Monica, Calif., including a high-end tablet for only $499.
So, how does Amazon do it?
How does it keep prices low, while still offering some of the latest hardware? Not to mention, how does it give away an ever-expanding catalog of movies and books for $79 a year in addition to free two-day shipping?
In an interview with
, Amazon’s founder and CEO Jeff Bezos provided some insight into the company’s economics.
During the conversation, the jovial leader laughed often (even when I suggested he lacked focus for selling everything from jeans to hardware). He was also quick to point out that while Amazon’s approach to making money may be different from others, he doesn’t necessarily believe others are doing it wrong — rather, they’ve just discovered what works best for them.