

Kindle Fire estimated cost to manufacture about $10 above retail - zinkem
http://www.computerworld.com/s/article/9220471/_Kindle_Fire_virtual_teardown_puts_cost_at_209.63_about_10_above_retail

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cas
If you look at the estimates for each item they seem relatively high so I was
not surprised when I read that they could easily be making a $50 profit
instead:

[http://www.eetimes.com/electronics-news/4228505/Kindle-
Fire-...](http://www.eetimes.com/electronics-news/4228505/Kindle-Fire-
profitable-at-estimated--150-BoM)

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gks
How many times does this need to be posted on here? Seriously about the 5th
time I think I've seen this.

I doubt even Amazon would sell it under the cost to manufacture, these studies
are stupid since they are taking a pricing guide and then estimating how many
they're going to sell and coming up with a number. I'm sure they're relatively
close, but the only way to tell for sure is to be Amazon and look at their
books. Simple as that.

Cost to replace defective units, cost for support… all those little costs add
up and make me think there's no way in hell amazon is selling it at a loss.

Don't try to kid yourself into thinking they expect to make up for it in media
sales either. That just isn't good business sense. Particularly when your
product is different enough from the iPad that you don't need to hit that
magic $200 price tag unless you are going to actually make money on it.

They're making money on it with every sale. It may not be a lot, but they're
making money.

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api
It's a loss leader for media.

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hugacow
That was only one study. Another study said it is $10 under. And none of it
takes into account people purchasing apps, the $29 covers, etc. The bigger
risk to their bottom line would be the SNL episode newscast that disses the
Fire. Apple must have seriously paid NBC off for that. See:
<http://news.ycombinator.com/item?id=3058207>

