Fire every one Kindle, Amazon's U.S. Dollar Loss 10

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 of only 199 U.S. dollars.

A market research firm, IHS iSuppli, analyze that to make a Fire Kindle, Amazon reached 191.65 U.S. dollars just for the hardware. Exact total including the cost of production and others reached 209.63 U.S. dollars.

Then, how Amazon get lucky? As previously predicted, Fire Kindle is not sold as a set only. Amazon designed the Kindle Fire as a device for accessing digital content Amazon, which targeted a major source of profits.

So, if compared, then a Kindle Fire buyer must spend more than 10 dollars so that profits can be obtained. Reasonable amount, or even may be too low, because users will definitely 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 on Fire exactly what would be obtained with these devices. So, like supermarkets alone, Kindle Fire makes the user gets the goods, while content providers have benefited.