Fire every one Kindle, Amazon's 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, iSuppli IHS, analyze that to make the Kindle a Fire, Amazon reached 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, Fire Kindle is not sold as a mere device. Amazon Kindle Fire designing a device for accessing digital content Amazon, which targeted a 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, like a supermarket just, Kindle Fire makes the user gets the goods, while content providers have benefited.

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