It Seems Weird How Cheap Amazon Kindles Are — Until You See This Crazy Stat; During a single year, Kindle owners spend, on average, $443 more buying stuff from Amazon than the average Amazon shopper who does not own a Kindle

December 20, 2013 Leave a comment

It Seems Weird How Cheap Amazon Kindles Are — Until You See This Crazy Stat

NICHOLAS CARLSON

DEC. 17, 2013, 10:46 AM 42,452 31

These days, you can buy a new Kindle e-reader from Amazon for $49. Meanwhile, Amazon’s Kindle Fire HDX with an 8.9 inch screen costs $379 – much cheaper than a comparable $499 iPad from Apple. How and why does Amazon charge so little for its gadgets? Both questions are answered with one single stat. During a single year, Kindle owners spend, on average, $443 more buying stuff from Amazon than the average Amazon shopper who does not own a Kindle. Consumer Intelligence Research Partners derived that stat from a survey of 300 subjects who made a purchase at Amazon.com in the three-month period ending Nov. 15, 2013. CIRP estimates that Amazon Kindle device owners spend approximately $1,233 per year buying 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 a press release put out to announce the study results (.PDF). “Kindle Fire provides 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 a loss – because it knows getting a device into a customer’s hands means that customer will spend an extra $4,500 at Amazon over the next 10 years.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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