As this chart shows, the Kindle is being used as a loss leader to sell product. I worry a lot that the Amazon walled garden and use of proprietary formats creates a schism in the freedom to read and that libraries should seriously consider whether supporting the Kindle format is a good thing in that it locks users into a particular commercial eco-system that print reading never did.
CHART OF THE DAY: How Much Money Amazon Is Making From The Kindle

Stephen

“@sabram: CHART OF THE DAY: How Much Money Amazon Is Making From The Kindle: A walled garden again… http://t.co/IkUdMFgK0t” #fb
How much Amazon makes off of the Kindle – http://t.co/sTwSeX7YzN(from @sabram)
@nataliebinder According to this, the Kindle is a loss leader http://t.co/NuVDnEP9S6