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Amazon Offers Latest Kindle Ebook Reader At A $5.25 Loss

kindle ebook readerAmazon the leading online book seller is selling its latest Kindle ebook reader at an estimated loss of $5.25 per unit. This decision has been made with an intention to ensuring beat the market competition by offering the lowest priced ebook device ever.

The latest Kindle is available at only $79, making it Amazon’s lowest priced e-reader so far. In fact, it’s so low-priced that it’s value is less than the manufacturing cost which is approximately $84.25, according to a report by research firm IHS Isuppli. Isuppli broke down the bill-of-materials worth around $30.50 for the display module, $30.37 for the main printed circuit board (PCB), $15.08 for enclosures and final assembly, $2.06 for box contents, and $0.59 for miscellaneous interface PCBs. That lowers the material expenses to $78.59. Adding making cost of $5.66 elevates the price to $84.25, giving Amazon a tiny loss of $5.25 on every unit of Kindle sold.

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