Amazon Kindle Fire sells at a $10 loss per device
The Amazon Kindle Fire costs just $199, which is amazingly cheap for an Android tablet, but now word emerges it's being made at a loss. While it's not a massive surprise, it is still interesting to have confirmation Amazon is hoping its content ecosystem is a big enough pull for people to buy the Fire.
Each Kindle Fire costs Amazon $209.63, according to IHS iSuppli, a market research company. Considering the Fire sells for $199, that's a loss of almost $10 on each Fire.
The company has a huge catalogue of e-books, movies and music it's hoping will tempt people to buy the Kindle Fire. Whether it's enough, considering the tablet's low specs and competition from Apple, remains to be seen.
Amazon boss Jeff Bezos unveiled the Kindle Fire last week. It's a 7-inch Android tablet at a rock bottom price, though there's no UK launch as yet. Rumours abound Amazon already has its successor waiting in the wings, ready for release early next year.
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