Kindle Fire tablet which started shipping this week, is being sold at a loss of $2.70. The actual manufacturing cost is $201.70 and Amazon is selling it at $199. This is a $2.70 loss generated per unit. The analysis report of IHS says that, Amazon will cover the loss through the sales of ebooks and movies that the customers buy from their store. It is also a known fact that the cost of semiconductor devices i.e; chips decrease over time.
Source: ET
Source: ET
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