Kindle Fire estimated cost to manufacture about $10 above retail(computerworld.com)
computerworld.com
Kindle Fire estimated cost to manufacture about $10 above retail
http://www.computerworld.com/s/article/9220471/_Kindle_Fire_virtual_teardown_puts_cost_at_209.63_about_10_above_retail
4 comments
How many times does this need to be posted on here? Seriously about the 5th time I think I've seen this.
I doubt even Amazon would sell it under the cost to manufacture, these studies are stupid since they are taking a pricing guide and then estimating how many they're going to sell and coming up with a number. I'm sure they're relatively close, but the only way to tell for sure is to be Amazon and look at their books. Simple as that.
Cost to replace defective units, cost for support… all those little costs add up and make me think there's no way in hell amazon is selling it at a loss.
Don't try to kid yourself into thinking they expect to make up for it in media sales either. That just isn't good business sense. Particularly when your product is different enough from the iPad that you don't need to hit that magic $200 price tag unless you are going to actually make money on it.
They're making money on it with every sale. It may not be a lot, but they're making money.
I doubt even Amazon would sell it under the cost to manufacture, these studies are stupid since they are taking a pricing guide and then estimating how many they're going to sell and coming up with a number. I'm sure they're relatively close, but the only way to tell for sure is to be Amazon and look at their books. Simple as that.
Cost to replace defective units, cost for support… all those little costs add up and make me think there's no way in hell amazon is selling it at a loss.
Don't try to kid yourself into thinking they expect to make up for it in media sales either. That just isn't good business sense. Particularly when your product is different enough from the iPad that you don't need to hit that magic $200 price tag unless you are going to actually make money on it.
They're making money on it with every sale. It may not be a lot, but they're making money.
It's a loss leader for media.
That was only one study. Another study said it is $10 under. And none of it takes into account people purchasing apps, the $29 covers, etc. The bigger risk to their bottom line would be the SNL episode newscast that disses the Fire. Apple must have seriously paid NBC off for that. See: http://news.ycombinator.com/item?id=3058207
http://www.eetimes.com/electronics-news/4228505/Kindle-Fire-...