It seems that Amazon’s how new tablet, the Kindle Fire will be selling at a loss, since the device costs $209.63 to make and it’s sold for $199. That means Amazon will lose about $10 for each sold unit, according to research firm IHS.
IHS recently revealed the Kindle Fire’s component costs, amounting to $191.65, but you must add to that factory expenses, that make it reach the final cost of $209.63. However, the catch here is that Amazon loaded the Android version on the device with its own services and products, so it’s more than going to make up for the loss by selling content and subscriptions to various services.
Kindle Fire is not only lower price than the predictions for it, but also $50 cheaper than the Nook Color from Barnes & Noble. Is there any point in mentioning that it seriously undercuts the iPad by more than 50% and any other Android slate by more than $100? So, I guess it’s worth the loss for Amazon, right?