Source: http://www.businessinsider.com/new-estimate-amazon-kindle-cost-2011-10


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.

Previously we saw an estimate that the Kindle’s parts cost $210, and we saw an estimate that it was losing $50 per device.

Here’s the breakdown from UBM:

chrt

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Source: http://www.businessinsider.com/chart-of-the-day-microsoft-profit-by-division-2011-7

Microsoft often likes to boast that it has multiple billion dollar revenue businesses, but there should be no mistake about what’s driving its profits: Windows and Office, with Servers And Tools kicking in a little bit extra.

chart of the day, microsoft, profit, income by division, july 2011

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