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Amazon Kindle Fire will lose money but gain grounds on tablet market

Tags:
  • World News
  • Hardware
  • Amazon
  • Consoles
  • Kindle
Last response: in News & Leisure
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September 29, 2011 10:29:20 AM

http://www.appleinsider.com/articles/11/09/28/piper_jaf...

So what do you think? Do you really think by selling Kindle, Amazon lose money on hardware? But wouldn't it be like a console? You buy the console for less than the hardware cost but the company end up with profit because you have to buy games, in this case, ebooks?

More about : amazon kindle fire lose money gain grounds tablet market

September 29, 2011 12:58:54 PM

"Apple is also monetizing the hardware upfront with a 30%+ gross margin on the iPad, whereas Amazon is likely losing about $50 per Kindle Fire."


Huh? Are they counting on future tax payer/government bailouts? How the hell is this a good business plan for Amazon?
September 30, 2011 12:38:38 AM

That is why I am thinking Amazon may be using the console strategy. Sale the hardware below material price but earn the profit back from selling content.
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