Nobody is likely to confuse a Kindle with a cellphone, but Amazon CEO Jeff Bezos said Monday he considered the cellphone business model: undercharge for the device and make it up on content and service fees.
But, Bezos told Wired’s Steven Levy at Wired’s Disruptive by Design conference in New York, it’s cheaper in the long run for customers to pay something akin to the actual cost for hardware. And fees and minimum purchase requirements create friction.
“We did consider [the cellphone model] for Kindle,” Bezos said in an interview with Wired’s Steven Levy at Wired’s Disruptive by Design Conference in New York. “Instead of driving the cognitive complexity of a two-year commitment, [we] just tell people, ‘This is the actual cost of the device,’” he said.
It makes
A refreshing change for companies to be upfront with their pricing, however I doubt a lot more people will opt for it as people tend to find monthly packages more affordable.
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