It looks like the Kindle Fire is a loss leader for Amazon product sales. IHS iSuppli tore apart a Kindle Fire to assess the cost of the tablet’s bill of materials. The research firm announced on Friday that the Fire’s BOM adds up to $185.60. The cost drifts up to $201.70 when manufacturing services are added. Amazon sells the Fire for $199. IHS iSuppli noted that the teardown assessment is preliminary. It accounts only for hardware and does not include additional expenses such as software, licensing, royalties and other expenditures.
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Kindle Fire Teardown Proves It's All About the Content
Posted by: Rob Spiegel November 18, 2011 11:30 AMIt looks like the Kindle Fire is a loss leader for Amazon product sales. IHS iSuppli tore apart a Kindle Fire to assess the cost of the tablet’s bill of materials. The research firm announced on Friday that the Fire’s BOM adds up to $185.60. The cost drifts up to $201.70 when manufacturing services are added. Amazon sells the Fire for $199. IHS iSuppli noted that the teardown assessment is preliminary. It accounts only for hardware and does not include additional expenses such as software, licensing, royalties and other expenditures.