Amazon has had a very efficient business model since the release of their first Kindle eReader over four years ago. They deliver their hardware at a breakeven or small profit point, making the Kindle Touch highly affordable, and ensuring as many sales as possible. Then they make up for that missed profit with extremely high margin, but affordable, digital content. With the largest digital marketplace available, and the largest online retail website, they have effectively carved out a niche where many consumers buy their device just to have instant access to the massive amount of digital content.
Amazon, usually on the forefront of eReader technology, released a touch activated eReader after their two main competitors, Kobo and Barnes & Noble. They made up for their late entry into the touch screen eReader marketplace by giving the device virtually unlimited lifetime storage of all Amazon content. Amazon launched a Cloud Storage product last year, and by allowing the Kindle touch screen activated eReader unlimited access to their Cloud Storage system, the Amazon Kindle Touch delivers far and away the largest storage capacity and access of any eReader.
Amazon then cut manufacturing costs by not having to worry about designing the device with a microSD slot, and at $99 for their Wi-Fi Kindle Touch eReader and $149 for their 3G Kindle Touch eReader, Amazon offers the least expensive options in both those connectivity types. Amazon has also signed agreements with more than 11,000 libraries across the US allowing access to those libraries’ digital content for Kindle Fire, Kindle Touch and Kindle owners. Now there is no need to worry about rushing back to the library to turn it books before they are overdue. The digital copies that you “check out” simply expire on the expiration date, and you can check books out from the comfort of your own home rather than having to physically go to your library.
Kindle also continues to make their devices more portable, something they have done from the beginning. The new Amazon Kindle Touch eReaders are 8% lighter and 11% smaller than the previous Kindle, yet do not sacrifice screen size. The same 6 inch E-ink Pearl technology is displayed, but users get a lighter and smaller device. Run time from a single battery charge is up to 60 days with 30 minutes a day usage, and both Kindle Touch models can hold up to 3,000 books at a time. Amazon promises download speeds of less than 60 seconds.