"Amazon Confirms It Makes No Profit On Kindles."

"We sell the hardware at our cost, so it is break-even on the hardware."

"What we find is that when people buy a Kindle they read four times as much as they did before they bought the Kindle,” said [Jeff] Bezos.... “But they don’t stop buying paper books. Kindle owners read four times as much, but they continue to buy both types of books.”

It's to their advantage, and maybe to your advantage. May I recommend: Kindle Paperwhite.