Teardown Shows Amazon Losing $10 on Every Kindle Fire Tablet (website, plan) - Tablets -iPad, Kindle, Galaxy Tab, Nook... - City-Data Forum

progressive25 · 10-08-2011, 10:53 AM

Amazon’s new Kindle Fire Tablet selling at $199 may be a much greater bargain for consumers than originally thought based on a just released report showing the online giant is actually losing about $10 on each unit it sells.

Teardown Shows Amazon Losing $10 on Every Kindle Fire Tablet | Fire Cult (http://firecult.com/2011/10/08/teardown-shows-amazon-losing-10-on-every-kindle-fire-tablet-2/ - broken link)

Charles22 · 10-08-2011, 11:01 AM

Now it's now a good bargain because Amazon is losing money on it? It still costs 200$.

EscapeCalifornia · 10-08-2011, 11:53 AM

$10 seems like a small loss to take when you're placing a device in people's hands that enables them to very easily spend lots of money with you.

kazyn · 10-08-2011, 12:04 PM

Quote:

Originally Posted by Charles22

Now it's now a good bargain because Amazon is losing money on it? It still costs 200$.

The hardware you're getting is worth more than you're paying. AKA bargain. Doesn't matter how much it is.

If I bought a new lambo gallardo for $50,000, wouldn't you call that a bargain?

Quote:

Originally Posted by EscapeCalifornia

$10 seems like a small loss to take when you're placing a device in people's hands that enables them to very easily spend lots of money with you.

It works for game consoles! It's a good business model in my opinion.

MikeJaquish · 10-08-2011, 12:17 PM

Razors and Razor Blades.

Flashlights and Batteries.

Cellphones and Service Plans.

Tried and True.

Tek_Freek · 10-08-2011, 12:21 PM

Inkjet printers and ink

tejano2828 · 10-08-2011, 08:13 PM

Losing 10 dollars on every Kindle is CHUMP change to Amazon considering how much money they'll make off content....I see a price drop on all the kindles. It has been predicted that the 79 dollar kindle will one day be FREE yes free.

EscapeCalifornia · 10-08-2011, 08:49 PM

Quote:

Originally Posted by MikeJaquish

Razors and Razor Blades.

Flashlights and Batteries.

Cellphones and Service Plans.

Tried and True.

Quote:

Originally Posted by Tek_Freek

Inkjet printers and ink

Free websites and advertising.

harry chickpea · 10-09-2011, 10:25 AM

In two years, that Kindle will be worth HOW much? New consumer electronics of any type is one of the worst uses of money you can imagine. Even automobiles have a longer depreciation schedule.

MikeJaquish · 10-09-2011, 10:56 AM

Quote:

Originally Posted by harry chickpea

In two years, that Kindle will be worth HOW much? New consumer electronics of any type is one of the worst uses of money you can imagine. Even automobiles have a longer depreciation schedule.

Hey, I have an HP Ipaq sitting here, loaded with Windows Mobile 5.

You will NEVER experience depreciation in value with it....