$199 Kindle Fire Costs $209 to Make

Shannon Stapleton, Reuters / Landov

Amazon CEO Jeff Bezos holds up the new Kindle Fire at a press conference in New York on Sept. 28, 2011.

Did somebody forget to do the math? According to iSuppli Research, the Amazon's new Kindle Fire costs $209.63 to make, including manufacturing expenses. But the company is selling it at $199, and factoring other costs the Kindle Fire could be sold at a $50-loss per unit. But the strategy is that the company hopes the new product will stimulate sales of goods on Amazon, thus boosting overall business.