Amazon is pushing more Kindle Fire HDX tablets off the store shelves by introducing new installment payment plans for budget-conscious customers.
Amazon is known for selling a wide range of tablets, e-readers at affordable prices, but in a fresh approach the e-commerce giant is offering its Kindle Fire HDX tablets in quarterly installments. The latest move targets budget-conscious customers in this holiday season. With the new offer, buyers will pay a quarter of the device's total value, applicable taxes on the full price and shipping costs, if any.
Amazon is giving away its latest 8.9-inch Fire HDX tablet with a convenient payment option, but there is a rider. Buyers will be limited to only one Kindle purchase at a time with the new installment payment plan. The consequences of missing a payment are losing access to the media on their tablet and their Amazon account.
The new installment offer is still a good option for shoppers closing on their Christmas buy list. Amazon has clarified that the company is not making huge profits out of its Kindle lineup. The profit margin remains extremely low compared to other tablets in the market, but the retailer's reliance is mainly on its Amazon ebooks, apps and other products via these tablets.
According to a latest research from market research firm Consumer Intelligence Research Partners, owners of Kindle e-readers and tablets in the U.S. spend an average $1,233 each year, compared to $790 spent by non-Kindle Amazon customers.
The firm also learnt that 30 percent of Amazon customers own a Kindle Fire, another 21 percent own a Kindle e-reader and 9 percent of its customers own both devices. This shows "how well Amazon has done to drive sales of what amounts to a portal to Amazon.com," according to Josh Lowitz, co-founder of Consumer Intelligence Research Partners, PCMag reports.
