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BAD BUSINESS $199 Kindle Fire Costs $209 to Make Shannon Stapleton, Reuters / Landov

$199 Kindle Fire Costs $209 to Make

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.

October 2, 2011 8:31 AM