Every One Kindle Fire, Amazon Loss 10 U.S. Dollar - Each sale of a Fire Kindle, Amazon was not immediately reap the benefits, but rather a loss of 10 U.S. dollars. Because the Kindle Fire production cost per unit was 210 U.S. dollars, while the selling price is only 199 U.S. dollars.
A market research firm HIS iSuppli, analyze that to make the Kindle Fire, Amazon spend 191.65 U.S. dollars only for its hardware, exact total including the cost of production and the other reached 209.63 U.S. dollars.
Then, how can Amazon make a profit? As previously predicted, Kindle Fire is not sold as a mere device. Amazon was designing Kindle Fire as device for accessing digital content of Amazon, which is targeted to major source of profits.
So, if compared, then a Kindle Fire buyer must spend money more than 10 dollars so the benefits can be obtained. Reasonable amount, or even may be too low, because the user would have to 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 Fire precisely on what would be obtained with these devices. So, just like a supermarket, Kindle Fire makes the user gets the goods, while content providers have benefited.
