Fire Kindle, Amazon was not immediately reap the benefits, but rather a loss of 10 dollars. Because the production of Fire Kindle per unit cost was 210 dollars, while the selling price of only 199 U.S. dollars.
A market research firm, IHS iSuppli, analyze that to make a Fire Kindle, Amazon reached 191.65 U.S. dollars just for the hardware. Including the exact total cost of production and others reached 209.63 U.S. dollars.
Then, how Amazon get lucky? As previously predicted, Fire Kindle is not sold as a mere device. Amazon designed the Kindle Fire as a tool for accessing digital content Amazon, which is targeted to be the main source of profit.
So, if compared, then a Kindle Fire buyer must spend more than 10 dollars so that profits can be obtained. Reasonable amount, or perhaps even too low, because the user would have to spend more over the years.
Almost certainly, Amazon would not be a big loss in real terms. IHS iSuppli make a statement that the Kindle appeal of Fire instead of what would be obtained with these devices. So, just like the supermarket, Kindle Fire makes the user gets the goods, while content providers have benefited.
Sources: New York Times