Amazon sells the Kindle Fire $56 more than the production cost

The Kindle Fire suffered a teardown a few days ago and we were able to see what hides inside Amazon’s tablet.

UBM Techinsights performed its own teardown on the Kindle Fire and reported that the total value of all the parts in the Kindle Fire is $143, including Wi-Fi, Flash, Memory and 7-inch display. Taking into account that the selling price of the Kindle Fire is $199, Amazon actually makes a profit of $56 if we take from the total price the shipping and handling costs.

It was previously rumoured that Amazon is loosing $10 per Kindle Fire, the tablet costing $210 to be produced. The new analysis shows us that Amazon is actually gaining money for each Kindle Fire plus the content that it is going to sell through its services.

Via : Semiaccurate