According to IHS iSuppli, as reported in PC Magazine Amazon is losing $10 on every Kindle Fire they sell.
Who knows how true this is. We know, for example, that Apple, with it’s massive volume and remarkable supply line, pays less than just about everyone else for component. So how is iSuppli supposed to know the deals that Amazon makes for parts?
Even if they are losing $10 per Kindle you can be sure that they’ll make that up, and more. The $40 “discount” they give for their ad-supported Kindles is a clear indicator that the ad-supported functionality alone is worth $40 per device to them.
Bezos is a smart, competent business owner. Unlike the yahoos at HP, you can be assured that Amazon isn’t throwing their cash out the door just for grins.
I’m still really skeptical of all these iSuppli parts costs lists though.