With Amazon only charging $200 per Kindle Fire, it’s widely assumed the company is taking a major loss on each device sold.
That might not be the case, after all, according to a new estimate of the cost of Kindle parts by UBM TechInsights, which says the Kindle Fire’s parts are $150 in total. This would suggest Amazon is breaking even, or turning a profit on each Kindle sold.
Obviously, a Kindle Fire is more than parts. It has to pay people to put to them together, it has to pay for shipping, storage, etc. UBM TechInsights doesn’t have an estimate for those costs.
For a point of comparison, UBM estimates the iPad’s components cost $270 for a wireless version, and the BlackBerry PlayBook’s components cost $170 for a 16GB version.
Here’s the breakdown from UBM:
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