Kindle giveaway would be aimed at iPad

Reports on Techcrunch that giant online retailer Amazon is planning to give away free Kindle e-book readers to its Prime subscribers make a lot of sense.

As console makers and mobile phone networks well know, you can make a loss on hardware so long as there's revenue in renewables, such as newspaper subscriptions or book purchases or games.

And Amazon's Prime customers a pay an annual fee of $79 (or £49) making the Kindle not entirely stringless, yet a decent enough incentive to woo punters to the Prime package.

Amazon Prime allows you to get a free two-day shipping on everything purchased in the US. In the UK, this is an unlimited one-day delivery.

The system took bit of a hit in the UK when Amazon announced that it would make shipping free on all products sold by Amazon direct regardless of the price. But shipping time can increase to more than a couple of days in this case.

Amazon Prime customers in the US apparently generate the most per capita revenue of all the outfit's online shoppers.