New Cost Estimate Shows the Kindle Fire is Sold at a Loss

The teardown experts at iSuppli have just finished taking apart the new Kindle Fire, and they have confirmed something we all suspected.

Amazon is selling the Kindle Fire at a loss. According to iSuppli, the KF cost a total of $202 to make. Given that it’s selling for $199, Amazon must really be interested in getting it into the hands of as many potential content buyers as possible.

 

Andrew Rassweiler, the IHS iSuppli analyst who supervised the teardown,noted that Amazon had stripped the KF down to minimize cost.

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