I don't know if this is still true, but I read a number of years ago that the Kindle hardware was sold at under cost and subsidized by the "sales" of DRMed cont

I don't know if this is still true, but I read a number of years ago that the Kindle hardware was sold at under cost and subsidized by the "sales" of DRMed content. I've got an early-gen Kindle with no content actually purchased from Amazon on it; it's a really nice arrangement.