Crazy Rumor: Kindle Fire Coming to the UK – £100

Metro invented a highly improbable and probably fiscally impossible rumor last month about the Kindle Fire. According to this tabloid rag, there’s a chance that the Kindle Fire, Amazon’s new 7″ Android tablet, will be coming to the UK with a retail of £100.

Needless to say, that simply won’t happen. This rumor doesn’t deserve anything more than a derisive snicker, but for the sake of thoroughness I will endeavor to explain why it’s nonsense. Hopefully this will quell any other pricing rumors.

Right now the Kindle Fire is selling for $199 in the US. By most estimates, Amazon is selling it at a loss.  The manufacturing cost alone is believed to be $202, and that doesn’t include the development cost or overhead.

When you convert the US retail, you end up with a price of £150. So Metro thinks that Amazon will knock another £50 off the price of a tablet that is already losing money? I don’t think Amazon can afford it. Also, that UK retail of £150 doesn’t include the taxes that would have to be included in the UK price.

A good rule of thumb for gadget prices is that the UK/Euro price will be numerically identical to the US price. This means that if the KF ever hits the UK, it might be price around £199. Note that this is twice the Metro price. It’s also a price that loses money for Amazon, so I think it will likely be higher.

One example of a higher UK price would be the current K4. It sells for $109 in the US and £89. The UK price is actually about $30 more than the US price, after conversion.