Amazon Kindle Sells Fire Below The Cost

At $ 199, Amazon sells the fire a little 'less than last produces tablet computer, according to market research firm IHS iSuppli.

In estimating "teardown" posted on Friday, IHS iSuppli said it would pay $ 201.70 produces fire that Amazon has started shipping to customers this week.

"Fire Kindle, for a suggested retail price of $ 199, sold at a loss of the Amazon Kindle as the base is also sold at a loss at current prices $ 79," Andrew Rassweiler IHS iSuppli said.

"Amazon makes its money not on hardware but on the Kindle paid content and other products, it plans to sell to the consumer through the Kindle," said Rassweiler.

He compared the business model for Amazon wireless carriers like AT & T and Verizon.

"They sell you a phone that costs $ 400 to $ 600 or more to be done for a price of only $ 200," he said. "However, we expect more than offset this loss with a service contract for two years."

IHS iSuppli's estimate takes into account the costs of equipment and software, licenses, fees or other expenses.

Starting at $ 87, the most expensive fire in the Kindle is the touch screen, the sources of the Amazon and LG Display E Ink holdings, according to IHS iSuppli.

Amazon refuses to give sales figures for the Kindle electronic book reader Kindle or fire, but the company said this week that the Kindle Four "best seller" item on Amazon.com.

Kindle a fire of seven inches (17.78 cm) screen, smaller than 9.7 inches iPad (24.6 cm), connects to the Internet with Wi-Fi and managed by the Android software from Google.

It has no camera or 3G connectivity feature on the shelves of the others, but gives buyers easy access to the online store Amazon, which sells books, music, movies, TV shows, games and other content.