Why would Amazon to sell Kindle Fire at a loss.
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| Kindle Fire $199 by Amazon |
Amazon recently launched the Kindle Fire in a cheap price (only $ 199 Kindle Fire HD 7″), while Amazon was selling at a price below cost at least $ 10.
Reports are released by IHS iSuppli estimates the cost of the Kindle Fire by stating that the cost of components used in the manufacture of tablets an Android will be about 209.63 dollars at Amazon. the sale price is $ 199, which means that Amazons, the new to the market. with a loss to the Kindle Fire known to the user as much as possible. The share price is lower than the previously forecast.
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| Kindle Fire : Total cost of production |
However, the launch of the very low price of Kindle Fire may affect the "tablet" with a "tablet" to work with the operating system, Google's Android as well as Samsung Electronics, Motorola and HTC. However, the IHS iSuppli said the components in the Kindle Fire total of about $191.65 on the total cost of production prices would rise to $209.63 estimated that mean Amazon is selling $10 per unit, while analysts expected to be at $ 50 per unit.
Business model that Amazon Kindle Fire was used in one of the Free Model in a "razor and razor blades" by refusing to sell the razor cheaply. We hope that consumers buy the blades at a profit. And the need for continuity. In this case, sales Kindle Fire cheap for the base product. And online services such as Amazon's digital music and movie titles and that will stimulate digital sales of the Kindle Fire also creates the opportunity to sell other products through Amazon's e-commerce website, too.
Credit by isuppli
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