Amazon Selling Its Tablet For a Loss

The much awaited Inc’s Kindle Fire Tablet which has started shipping from this week onward which will cost the company a loss of $2. A Research firm said that the original cost of production of kindle fire tablet is $201 to which the company is selling it at $199.

The Analyst indicated that company is seeks to cover the looses through the sales of book and movies of the tablet. Amazon CEO said that the company’s goal was to make a small profit from the hardware, but as a retail company, Amazon was willing to live with a smaller margin than most electronics companies would. He added “We want the hardware device to be profitable and the content to be profitable. We really don’t want to subsidize one with the other,”
The Analysts estimates includes the cost of components and assembly, but not the costs of development, marketing or packaging. The most expensive part of the Kindle Fire is the 7-inch (17-centimeter) color touch screen, which costs $87.
Amazon kept the cost of the tablet low compared to Apple Inc.’s iPad and similar tablets by making it smaller _ the screen is half the size of that for the iPad _ keeping the amount of memory low and excluding a camera and microphone.

  • It doesn’t really matter how much does this device costs. The real problem is the excessively restrictive license Amazon has regarding books and this device. So, i’ll never buy one, neither use one even if it were a gift: i would sell it or destroy it.
    Too bad Amazon, it’s a nice device, but it’s pretty much like the One Ring: it catches you in a world of restrictiveness….