May 22, 2012

It Costs Amazon Less to Make a Kindle Fire Than Previously Thought

It Costs Amazon Less to Make a Kindle Fire Than Previously Thought
With each Kindle Fire sale Amazon loses money, but not that much. On Thursday, iSuppli did a teardown, estimating it costs Amazon a $201.70 to make its tablet. The Wall Street Journal reports on Friday that the tablet only costs Amazon $203 to make. The two estimates put Amazon’s loss on the tablet, which is priced at $199, in the $3 to $4 range before other expenses are factored in. That’s still a loss, but a lot less than previously estimated. Related: Amazon Kindle Fire Review Roundup: You Get What You Pay For