A latest teardown conducted by IHS iSuppli has revealed that Amazon’s upfront loss for each unit of the Kindle Fire tablet it sells is lower than what the research firm previously estimated.
In the results of a teardown IHS iSuppli published on Friday, it says that the cost for each Kindle Fire Amazon sells is $201.70.
This means that Amazon takes an upfront loss of $2.70 for every Kindle Fire sold.
This is lower than an estimate IHS iSuppli provided almost two months ago where it said that each Kindle Fire costs $209.63 to make.
Nonetheless, just like that previous estimate, IHS iSuppli does not include costs like licensing, packaging, and shipment costs.
Furthermore, IHS iSuppli also revealed lately that Amazon does not only lose money upfront on the Kindle Fire but also with the most affordable Kindle the internet commerce giant is selling.
Amazon is expected to recoup its upfront loss on the Kindle Fire and other Kindle device with purchases by users coursed through its online stores.