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Amazon To Lose $10 Per Kindle Fire

Posted by Soulskill on from the on-hardware-anyway dept.

An anonymous reader writes "According to a manufacturing cost breakdown, it turns out Amazon is willing to sell its new Kindle Fire at a $10 loss. An analyst estimates that the Kindle Fire, priced at $199, actually costs $209.63 to produce. That said, the device is likely to be much more valuable to Amazon through content sales and the ability to drive more purchases through its website."

3 of 181 comments (clear)

  1. Well if an anlyst says so it must be true by blahbooboo · · Score: 5, Insightful

    Gosh, these analysts get such huge salaries and most of the time they are wrong. What a great job!

    1. Re:Well if an anlyst says so it must be true by Xacid · · Score: 5, Insightful

      I find it hard to believe an estimation like this could even consider a $10 dollar difference not within margin of error. Pretty much non-news here.

  2. the're not going to lose 1 cent by cats-paw · · Score: 5, Interesting

    These kind of stories always show up - but no matter how much they think they know about the production they are STILL
    underestimating the amount of buying power somebody like Amazon has.

    Amazon is probably quoting an _initial_ production run of 10 million units. They are getting excellent pricing.
    There is no way they are losing a penny on these things.

    --
    Absolute statements are never true