![]() You can buy a decent printer for $40 - less than it costs to produce. This is the model printer manufacturers often use. There's no Apple store on an Amazon device. You buy Amazon's books, movies, and music. ![]() Once you're inside Amazon's ecosystem, there are a whole bunch of ways they can make money off you. And (of course) Amazon is the one selling books, movies and records. Why does Amazon sell a product at a loss? Because, for Amazon, the Fire is a book store, and a movie theater, and a record shop. He added up the price of the components in the tablet and came up with a cost of $209.63 for materials and manufacturing per tablet.Īnd Rassweiler's estimate doesn't include the licensing deals Amazon cuts to stream content, or the marketing to promote the Fire. But Andrew Rassweiler of the research firm IHS iSuppli has a pretty good idea. The new tablet sells for $199 - less than half the price of an iPad.Īmazon can sell for such a low price partly because it's willing to sell each Kindle Fire for less than it costs to produce.Īmazon hasn't said exactly how much it costs the company to make each Fire. You can't afford NOT to buy yourself a Kindle Fire. If you wanted a tablet but thought the price of an iPad was too steep, Amazon has a message for you.
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