Jeff Bezos is a genius!

I had heard that Amazon was losing money on each unit of the Kindle Fire that it sold. I erroneously thought that the amount would be 10,20, 30 or 40 dollars a unit.

From the Huffington Post: Inc.’s Kindle Fire tablet, which started shipping this week, costs $201.70 to make, a research firm said Friday. That’s $2.70 more than Amazon charges for it.

The analysis by IHS indicates that Amazon is, at least initially, selling the tablet at a loss that it hopes to cover through sales of books and movies for the device. The manufacturing cost of a new gadget usually comes down over time as chips become cheaper.

That’s pretty amazing. Now it’s no Ipad for sure. It’s a lot more plastic looking and cheaper looking and that’s because… It’s cheaper.

Amazon kept the cost of the tablet low compared to Apple Inc.’s iPad and similar tablets by making it smaller – the screen is half the size of that for the iPad – keeping the amount of memory low and excluding a camera and microphone.

I have consistently said that Amazon will make a KILLING this holiday season because the price is right!

I can’t wait to see how they do. Microsoft take note.

About the Author

Onuora Amobi is the Founder and VP of Digital Marketing at Learn About The Web Inc. Onuora has more than a decade of information security, project management and management consulting experience. He has specialized in the management and deployment of large scale ERP client/server systems.

In addition to being a former Microsoft MVP and the founder and editor of, he is the CEO of a Pasadena based online marketing education startup - Learn About The Web Inc. ( and The Redmond Cloud (

Related Posts

Microsoft announced today that it will offer a free Touch or Type cover along with the Surface...

The Acer Iconia W3 tablet, set for release early next month is one of the most anticipated...

The trend of price cuts on Windows RT tablets continues. It was just a month or so ago that a...

  • Penta2100

    This is what I’ve been trying to say to people!!! Companies should sell them less for what they are actually worth. They have MILLIONS in their deep pockets. They are able to loose money on stuff so they should take the risk!