Feb 132010

There’s speculation at Techcrunch that Amazon will try to provide FREE Kindles to Amazon Prime customers (those who pay an annually fee of $79 for unlimited free 2nd day prime shipping). The free Kindle idea is just an extension of what Amazon tried to do prior to Apple’s iPad announcement by offering their best customer a full refund and keeping the Kindle if they didn’t like it. We explored the idea of free eReader in a previous article and it may materialize into reality.

How does Amazon make any money by giving the Kindle ereader away to best customers? The hope is to retain these good clients and bet that they continue to buy on a regular basis to offset the Kindle cost. This long-term strategy is good for customers and Amazon’s future bottom line. After free Kindles are given to prime customers, are free Kindles for everyone inevitable? Can the eReader competition (e.g. Apple iPad, Sony PRS, and Barnes & Noble Nook) match Amazon’s the offer?

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