Is the Amazon Kindle Fire being made at a loss?
Amazon’s Kindle Fire is quite the bargain when you look at all the tablet’s on the market, and with word that Amazon sold a massive 95,000 Kindle Fire’s in the first 24 hours of its US sales new word has emerged that Amazon is selling each device at a $10 loss per unit, meaning Amazon could have totted up a loss of $1 million in 24 hours of the Kindle Fire’s release. According to market research company IHS iSuppli, the Kindle Fire costs Amazon $209.63 per unit to make and with a price tag of $199, that equates to a loss of almost $10 per tablet.
Amazon’s pricing strategy with the Kindle Fire will ensure that there is a high demand for the product throughout the year, and with the Kindle Fire having access to the Amazon’s vast catalogue of e-books, apps, games, music and movies, Amazon will be hoping that users of the Kindle Fire will purchase downloadable content to make up for the loss on each device. What this equates to is a very intelligent method of driving their product to market, as the downloadable content users buy can be used to fund their research and development project for future updates to the Fire whilst Amazon shift a whole lotta’ stock.
So to sum up this news yes Amazon may very well be making an almost $10 loss on each Kindle Fire tablet they sell, however Amazon will make that back through downloadable purchases. In other words, Amazon is giving you tablets at their cost to pump up the sales of their downloads.
Via: T3
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Twitter: FrankTreatment
but I don’t think that they will loose money in the long run. Don’t forget the sales they make on the books and games you can buy from there and of course all intergrated in the Kindle Fire. Read my review here: http://www.thekindlefire.org and decide for yourself if it is worth to buy one. Regards, Frank
Interesting post
Nice review, Frank, what is your take on what might be in the Kindle Fire 2?
Twitter: FrankTreatment
Anyway, I think or hope that the successor (because Amazon will not give a name that would imply the number 1 is already outdated) will have a microphone (how hard can that be to implement) and maybe a bigger screen. It will be a bit more expensive, maybe $279 or so that it is easy to spend just that extra money, but of course it will be worth it!For those who want to win the Kindle Fire for free I found a site where you can: http://www.thekindlefire.org/win-the-kindle-fire/Only 2 days left!
You wanna talk about the The Kindle Fire 2 already?!