Tiny Short term loss. Huge Long term Profit? Time has the answer...
Amazon.com takes a hit with the sale of each Kindle Fire, but the loss isn't as bad as initially thought. A look at the build of materials and manufacturing costs concluded that Amazon spends $201.70 on each Kindle Fire, only slightly above its $199 retail price, according to research firm IHS iSuppli. The cost is lower than the nearly $210 estimate the firm initially placed on the device.
As previously reported, Texas Instruments was a major contributor to the tablet.The Kindle Fire uses a TI application processor, as well as the power management device and audio codec.
The most expensive component in the Kindle Fire is the display and touch screen, IHS iSuppli said, noting that it cost $87, or nearly half the build of material cost. The display comes from LG Display and E Ink Holdings.
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