20 Nov '11, 10am

Amazon sells Kindle Fire below cost - AsiaOne

Amazon sells Kindle Fire below cost - AsiaOne

At US$199 (S$258), Amazon is selling the Kindle Fire slightly below the cost it takes to manufacture the tablet computer, according to market research firm IHS iSuppli. In a "teardown" estimate published Friday, IHS iSuppli said it costs US$201.70 (S$261) to manufacture the Kindle Fire, which Amazon began shipping to customers this week. "The Kindle Fire, at a retail price point of US$199, is sold at a loss by Amazon, just as the basic Kindle is also sold at a loss at the current US$79 retail price point," IHS iSuppli's Andrew Rassweiler said. "Amazon makes its money not on Kindle hardware, but on the paid content and other products it plans to sell the consumer through the Kindle," Rassweiler said. He compared Amazon's business model to that of wireless companies such as AT&T or Verizon. "They sell you a phone that costs them US$400 to US$600 or more to make for a price o...

Full article: http://www.asiaone.com/News/Latest%2BNews/Science%2Band%2...

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