For every one Kindle Fire, Amazon Loss USD 10

For every one Kindle Fire, Amazon Loss USD 10 — Each sale of a Kindle Fire, Amazon was not immediately reap the benefits, but rather a loss of 10 U.S. dollars. Because the Amazon Kindle Fire production cost per unit was 210 U.S. dollars, while the selling price of only 199 U.S. dollars.

A market research firm, IHS iSuppli, analyze that to make a Fire Kindle, Amazon reached 191.65 U.S. dollars just for the hardware. Exact total including the cost of production and others reached 209.63 U.S. dollars. Then, how Amazon get lucky? As previously predicted, Amazon Kindle Fire is not sold as a set only. Amazon designed the Kindle Fire as a device for accessing Amazon digital content, which targeted a major source of profits.

So, if compared, then a Kindle Fire buyer must spend more than 10 dollars so that profits can be obtained. Reasonable amount, or even may be too low, because users will definitely spend more over the years. Almost certainly, the Amazon would not be a big loss in real terms. IHS iSuppli make a statement that the appeal of the Kindle on Fire exactly what would be obtained with these devices. So, like supermarkets alone, Kindle Fire makes the user gets the goods, while content providers have benefited.