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BAD BUSINESS

$199 Kindle Fire Costs $209 to Make

Amazon selling the tablet at a loss.

cheats/2011/10/02/199-kindle-fire-costs-209-to-make/kindle-fire-amazon-lyons_ik4amt

Shannon Stapleton, Reuters / Landov

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.

Read it at International Business Times

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