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Amazon Incurring Loss Selling Kindle Fire

Amazon Incurring Loss Selling Kindle Fire Amazon.com is incurring loss per unit sell of $199 Kindle Fire, as reported by the IHS iSuppli.  The report also says that total manufacturing cost each Kindle tablet is $201.70.

A Seattle-based retailer, making its debut through the Fire tablet, has projected to sell approximately 3 to 5 million before the current year ends.

On the other hand, Amazon’s shares have encountered drastic fall at the Nasdaq stock exchange on last Friday.

Fire’s 7-inch display is the most costly part of the entire device, appearing at $87 per unit, said IHS. Supplier of the displays for the Fire is LG, which is simultaneously manufacturing 7-inch screens for Nook Color as well as Nook Tablet of the Barnes & Noble, the research firm added.

Texas Instruments, a hardware company, is now manufacturing the 1-GigaHertz processor for the fire tablet, as revealed by the IHS report.

The report said that Amazon saved money substantially by excluding items like camera, Hands free, microSD memory slot, 3G or 4G radios, HDMI port.

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