Amazon to give away Kindle to prime subscribers - report

Amazon wants to give free Kindle, the electronic reader, to its prime subscriber in order to thwart the threat posed by Apple's new iPad, according to a report by technology site TechCrunch.com.

Amazon wants to give free Kindle, the electronic reader, to its prime subscriber in order to thwart the threat posed by Apple's new iPad, according to a report by technology site TechCrunch.com.

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The report said that Amazon would start giving the $259 device to subscribers of Amazon Prime, a $79 per year service that gives customers free two-day shipping on everything they buy from the web retail giant.

Amazon believes that it can make money on the giveaway because its best customers would buy enough products to make up for the free device over a few years, especially if the company is able to bring production costs down, the report said.

Apple launched its iPad tablet computer last month. The iPad, which is optimised for web browsing, entertainment and electronic book reading, will go on sale in March with prices ranging from $499 to $829.