Whether Amazon's Kindle sales are stellar or just okay, they could easily get a quick boost as part of a new promotion from Amazon and Chase, Amazon's Visa card partner.
The companies' latest offer: New cardmembers who buy a Kindle with their Amazon Visa will get $100 off the price of the e-book reader -- a 28% discount off its $359 retail price, and $70 bigger bonus than the $30 Chase typically offers new Amazon Visa applicants.
Amazon bears will use this as another indicator that Kindle sales are disappointing and that would-be buyers need a bigger incentive to bet on a nascent technology that could quickly be forgotten.
But it's easy to see how this would benefit both parties: Amazon gets to sell more Kindles, and new Kindle owners will probably generate a flurry of follow-up transactions, like a bunch of books, and maybe a subscription to The New York Times. That generates more digital revenue for Amazon and more credit card transactions for Chase, which it gets paid to process. Because Amazon Visa cardholders get bonus rewards points shopping at Amazon, we assume people will use that card for the bulk of their Kindle purchases.
What we don't know: Who's subsidizing that extra $70. The language on Amazon's site -- "Thanks to Chase, you get $100 off Kindle when you get the NEW Amazon.com Rewards Visa Card instantly" -- suggests it's Chase. But it could just as easily be both companies footing the bill -- as it's a mutually beneficial transaction.
See Also:
Amazon: Kindle Isn't *That* Big A Hit; College Edition In The Works
Citi: Yep, The Kindle's A Huge Hit. $1 Billion For Amazon In 2010
Amazon May Have Actually Sold A Bunch Of Kindles
