Amazon Kindle Fire - Loss of $10.63 per unit

The making cost of Amazon Kindle Fire is higher than the selling price in the market. According to estimates by IHS iSuppli, the cost of one unit Kindle Fire reached U.S. $ 209.63, which divided into U.S. $ 191.65 for parts, and the rest is promotion and marketing cost.


 While Amazon sells this tablet at U.S. $ 199. That is, Amazon will lose U.S. $ 10.63 per unit. Asked about low selling price of Kindle Fire, an Amazon representative declined to comment.

 Wayne Lam, an analyst at IHS iSuppli, said in order more easily accept by the market maybe Amazon accidentally cut the price of Kindle Fire. Who want to reach by Amazon, he added, is not the number of tablets selling, but rather on digital content sales.

“Amazon Kindle Fire will drive demand for digital content provided by Amazon, “said Lam, told to Reuters on Monday, October 3, 2011.

Amazon will get great profit according the difference in price and costs incurred to make the tablets if Amazon success making Kindle Fire owners addicted to Amazon's digital content.

More details about Amazon Kindle Fire, quoted from gizmodo.com, the tablet has a 7-inch screen size with a 16-million colors. Like iPad, a tablet is also embedded an IPS panel, has a wide viewing angle and excellent color saturation. Dense enough resolution to 169 pixels per inch. This is not comparable with 326 pixels per inch small iPhone 4 screens, but it is better than the iPad that comes with 132 pixels per inch.

In addition, Gorilla Glass protects this screen. While the back body has been rubberized coated. Tablet weight is 414g, and only has one port for charging.

Amazon Kindle Fire supported by dual-core CPU and, of course, has Wi-Fi. Smooth content display. It does not have a camera or microphone, so there is no video conferencing feature and there is no 3G connectivity.

This tablet has only 8GB of memory. This is the real cloud, where your content available on the web, and we already know that Amazon will store them in the clouds. Amazon Kindle Fire is probably the best business tablet for this time.

image courtesy amazon.com



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