Amazon Really Does Lose Money on Every Kindle Fire HD (But Microsoft, Not So Much)

Fresh on the heel of an iPad miniskirt teardown that reveal $ 188 Charles Frederick Worth of element , IHS has peg the Kindle Fire HD flier of textile at $ 165 . That means that only about 20 dollar bill ’ worth of computer hardware separates twist with $ 130 price rag differential . Yeesh .

It was no surprise that the Kindle Fire HD was at best a prison-breaking - even proposition for Bezos & Co. , but that $ 200 price tag await even more unhinged when you consider all the enquiry and ontogenesis and selling costs that are n’t count in that $ 165 name . Consider that there ’s a $ 141 opening between Apple ’s iPad mini bill of materials and its sticker price . That distance , for Amazon , is just $ 34 .

Microsoft , meanwhile , environ up a $ 271 components bill for every $ 500 32 GB Microsoft Surface it pumps out . That gap makes sense peculiarly given Microsoft ’s want of a wildly profitable depicted object clientele , which is how Amazon absolve its kamikaze Kindle pricing . Microsoft ’s advantage is even more pronounced when you factor out in its Touch Cover , which retails for $ 120 when bought singly , and contains about $ 16 Charles Frederick Worth of parts . [ AllThingsD ]

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