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[VentureBeat] Amazon’s $199 Kindle Fire costs $210 to build

post #1 of 35
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Quote:
Amazon will lose around $10 for every $199 Kindle Fire tablet it sells, but the company will make back that amount as a small profit when consumers buy digital content, according to a report by market research company IHS iSuppli.

The news isn’t too surprising, since it has been speculated for some time that Amazon’s tablet would serve more as a conduit to its digital media ecosystem, than a device to give Amazon a huge profit in sales alone.


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post #2 of 35
looks like it's doing the opposite of the rivals ; apple blackberry etc
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post #3 of 35
Amazon makes the money back on services like its app store, Instant Video, MP3 and Cloud.
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post #4 of 35
Does that estimate factor volume discounts that Amazon might get for getting these things in bulk?

Regardless that's still a tiny profit margin, and I applaud companies like this who win customers with service and low pricing.
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post #5 of 35
surely amazon gets bulk discount, so these prices are not really what they pay per device
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post #6 of 35
a dangerous move. i can't believe someone tried that again. The last time was song with PS3 i believe?

unfortunately unlike a console like PS3, games and apps from kindle can't cost $59.99, so.....

I still pray for its success though, whatever it takes to bring apple down, even by just one step
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post #7 of 35
Quote:
Originally Posted by HarrisLam View Post
a dangerous move. i can't believe someone tried that again. The last time was song with PS3 i believe?

unfortunately unlike a console like PS3, games and apps from kindle can't cost $59.99, so.....

I still pray for its success though, whatever it takes to bring apple down, even by just one step
Actually, pretty much all consoles were sold at loss when they were released (except the Wii), iirc.

And apps might not cost $59.99, but at 99 cents, you buy more of them (well, maybe not, but that works for me if I compare my $5 Steam games to my $60 360 games )
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post #8 of 35
Guys, don't forget that half of the new Kindles have advertising on them that they'll make money from, and that they'll be used to buy a lot of items from Amazon.com as well.
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post #9 of 35
Props to Amazon for releasing a quality device at such a low cost to consumers.
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post #10 of 35
Something like what Sony's PS3 was, of course it's profitable now....
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