November 18, 2011

St. Louis Post-Dispatch: Research firm: Amazon sells $199 tablet at a loss

Research firm: Amazon sells $199 tablet at a loss
Amazon.com Inc."s Kindle Fire tablet, which started shipping this week, costs $201.70 to make, a research firm said Friday. That's $2.70 more than Amazon charges for it.

The analysis by IHS indicates that Amazon is, at least initially, selling the tablet at a loss that it hopes to cover through sales of books and movies for the device. The manufacturing cost of a new gadget usually comes down over time as chips become cheaper. ...

http://www.stltoday.com/business/technology/research-firm-amazon-sells-tablet-at-a-loss/article_11903967-5b6b-5856-9064-01f53f2a857f.html

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