Kindle Fire may be something of a bargain for consumers, but Amazon itself looks to be taking a hit for every unit it sells according to figures from iSuppli.
The firm estimates it costs Amazon $201.70 to build each Kindle Fire, which means, with an initial price of $199.99, the firm will lose $1.71 for every one of the devices sold.
This figure is actually less than the $10 margin originally estimated by iSuppli back in October 2011.
Supply chain
The main culprit in the cost of manufacturing is the Kindle Fire's screen which costs $87 to build. Other components, such as the RAM, battery and the case cost between $15-$25.
The maths still add up for the company though, with Amazon picking up revenue aplenty from apps, games and books et al that will be sold on the device.
Initial estimates forecast 5 million Kindle Fires will be sold before the end of 2011, with initial shipping volumes reportedly increased to deal with demand.
[source: iSuppli]
News
When Matt was 7 years old he didn't write to Santa like the other little boys and girls. He wrote to Mario. When the rotund plumber replied, Matt's dedication to a life of gaming was established. Like an otaku David Carradine, he wandered the planet until becoming a writer at Pocket Gamer.
Related Articles
Data & Research
Jul 19th, 2013
As smartphone shipments double, so iPhone sales are predicted to wane
Data & Research
Jun 1st, 2012
Nokia makes $200 less on every Lumia 900 sold than Apple does with iPhone 4S
Top Stories
News
11 hours, 6 minutes ago
App Store developers can start nominating their games for featuring later this year
News
12 hours, 21 minutes ago
Apple joins generative AI revolution with Apple Intelligence and ChatGPT support
News
Jun 10th, 2024
Devsisters’ Chris O’Kelly talks upselling IP to fans across multiple games without cannibalisation
Feature
Jun 10th, 2024
Hot Five: Squad Busters’ supercharged launch, Pokémon’s record revenue, and Star Wars: Hunters finally hits the target
Events
Tribeca Games Festival 2024 | North America | Jun 5th |
Steam Next Fest: June 2024 Edition | Jun 10th | |
WN Conference Istanbul 2024 | Jun 11th | |
GamesForum Hamburg 2024 | Europe | Jun 11th |
ESI London 2024 | Europe | Jun 13th |
Game Con Canada (GCC) 2024 | North America | Jun 14th |
Indie Dev Play 2024 | Europe | Jun 14th |
DevGAMM Vilnius 2024 | Europe | Jun 14th |