Kindle Fire Teardown Pegs Price at $209.63

A teardown of Amazon's Kindle Fire revealed that the add together cost of building one tablet is $10 more expensive than the toll of the device, which means that, awhile at to the lowest degree, it'll be selling nonplused. Only that's precisely what Amazon wants.

A "virtual estimate" by the IHS iSuppli Teardown Analysis Service shows that the Kindle Fire's bill of materials is $191.65 before manufacturing expenses. Subsequently that, it's $209.63; roughly $10 more than the Evoke Fire's $199 price tag — but that's still to a lesser degree half of an entry-level iPad, and cheaper than many different tablets, even afterward Brim and HTC's emergency price reductions.

Kindle Fire Teardown Pegs Price at $209.63

Amazon's business model is explained as "razor-razor blade," a scheme formulated away Gillette wherein the company oversubscribed razors at dirt-bum prices and ready-made its profit from replacement razor blades. The vast majority of the Kindle Terminat's content comes directly from Amazon's own music, video, e-book and retail stores, indeed Amazon expects to make its money — and build its own branded life style — from content sales rather than hardware sales. Amazon took the same approach with its prior e-ink Conflagrate: It was priced at $189, but cost $156 to make, accordant to the Fence Street Journal. As a result, presumption the sales numbers pool of e-books outranking impress books and the popularity of the Kindle platform, it's speculated that Amazon ready-made most of its money on e-book sales.

Plus, the Provok Fire's $199 price point puts it in the category of "impulse buy" rather than "investment," which is appealing for tablet-hungry consumers World Health Organization Don't want to drop a half-grand on an iPad.

But just because the Kindle Fire will liable be a huge holiday success — it clocked nearly 100,000 preorders on its first day — doesn't mean IT's anywhere close to existence an iPad killer, as it has a mere divide of the iPad's functionality.

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