Amazon Considering Free Kindles for Prime Members?

By: Matt Hickey | cnet.com

There are more rumors fluttering around Seattle that at some point, likely the holiday season of 2011, Amazon will start giving away its Kindle e-book reader for free, likely to select (as in Prime) members. And as the e-book market expands, the possibility is looking more and more likely.

Amazon doesn’t make much money on the Kindle e-book reading device. And it’s not supposed to; the hardware is a loss-leader that allows mobile access to–and binds customers to–Amazon’s e-books store. It’s a way for Amazon to say that, yes, its e-books really can replace dead tree editions.

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