Kindle Fire Sells as Loss-Leader Afterall; Cost Breakdown Reveals $201.70 to Build

Discussion in 'Android Tablet News' started by dgstorm, Nov 21, 2011.

  1. dgstorm

    dgstorm Editor in Chief Staff Member

    Jan 5, 2011
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    Earlier in the year, we shared rumors that the Amazon Kindle Fire would sell as a "Loss-Leader." That means that it would cost more to build than Amazon intended to sell it for, and instead would make profit off app and store purchases, subscriptions and service sign-ups. Then, later this rumor was dispelled and the estimated cost of the device would be around $150-160.

    Now things have turned around again, and from a recent price breakdown analysis that market research and intelligence firm IHS iSuppli performed, it turns out that the previous rumors were true. The new Amazon Kindle Fire actually cost $201.70 to manufacturer, which is a tad bit higher than the $199.99 that it sells for. Here's a quote from the BGR article with details from IHS iSuppli,
    In fact, it's also important to note that these are only the manufacturing costs associated with the device and does not account for marketing, advertising, royalties and licensing, so the actual cost of the device is quite a bit higher.

    Source: Kindle-FireForum via BGR

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