Andre Yoskowitz
11 Nov 2011 16:23
Amazon, who is losing at least $10 on every Kindle Fire sold, appears to also be losing money on every $79 Kindle they are selling.
According to a teardown from research firm IHS, the hardware is costing the company $84.25 to make.
The bill of materials is $78.59 but the added $5.66 includes everything else, says the firm.
It is also important to note that the figure only includes costs "incurred until the end of the assembly line," and does not include shipping and R&D.
As with the Kindle Fire, Amazon is expected to quickly make the money back through sales of e-books. The Fire, however, should be a much larger money maker given its access to Amazon shopping, books, music, movies and cloud storage.