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Not to mention that I'm sure they count on some amount of content sales for each Fire sold (and I'm sure they have a pretty good estimate on that amount).
And this is not even just Kindle content. Since getting my Fire in November I've bought a total of ONE kindle book, gotten a lot of free apps but not any paid ones, did not buy Prime, never paid for any Amazon video. But my purchases of physical stuff on Amazon in the last 4 months are probably double what they would otherwise have been, just because the Fire got me thinking Amazon-first, both during the pre-order period and then especially during the free month of Prime located smack-dab in Christmas shopping season. So they have more than made up for any $5-10 loss they may have taken on my Fire.
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