Amazon's new Kindle: Not itself a money maker

Althea Chang, Producer
Amazon's New Kindle: Not Itself a Money Maker
Amazon's New Kindle: Not Itself a Money Maker

Amazon's new Kindle Fire tablets themselves aren't expected to make the online retailer and device maker a ton of money. Instead, the content and services users pay for on the devices should help the company rake in more cash.

The new Kindles, revealed Wednesday, will cost $229 for a 7-inch screen and $379 for a 8.9-inch screen. Meanwhile Apple's iPad mini prices start at $329 and the full-sized iPad costs $499 or more.

"We have been very clear, we sell these devices at break even. We don't make money when people buy these devices," Amazon CEO Jeff Bezos told CNBC. "We want to make money when people use our devices by buying Kindle e-books, buying movies and TV shows and music and so on," Bezos explained.

"I think it gets harder and harder for people like Apple to be successful on the low- to mid-end of the market because Amazon just doesn't care about profitability," said Gene Munster, senior research analyst at Piper Jaffray.

—By CNBC's Althea Chang.