October 7, 2011

Amazon losses $10 from each Kindle Fire Device ?

Amazon's Kindle Fire seems making the trend in touch pad world with the very attractive price of $199. But according to iSuppli, seems Amazon is losing about $10 per tablet.  the estimated build cost of the device is said to be $209.63, where $191.65 would be the cost of materials with $8.40 manufacturing costs and $9.58 margin.


According to the sources, two facts can be highlighted as answers for the big question, why ?

1. Every 1 out of 4 people (27 % to the exact amount) purchase kind of accessories for the device from Amazon, having high margins.But this may be making some backup but  not completely.

2. Amazon is heavily marketing the shopping at own retail shop, where that would create a wider business model. The company is trying to  get the maximum advantage from the industry being the largest retail store as well as a touch pad manufacturer. The significant fact here is that the other retailers like walmart are not related with any type of kindle kind of thing which can be used for promoting retail everyday goods. On the other hand, successful device makers like Apple are targeting on the hardware and content selling of the devices. So seems Amazon is making a unique business model with Kindle Fire.

Kindle Fire : Reaching top, Rate of 2000 per hour !

Kindle Fire, the Amazon's reach of touch pad world is making a real fire on arena. 

Amazon announced Kindle Fire, the next generation of the kindle series with a sense of a touch pad. According to the researches, the price of $199 is making the product more attractive when comparing to the competitors like apple. The pre-ordering period has begun, even though the official release is due on 15th Nov 2011.  95000 kindle devices were ordered on the first day making a remark on the touch pad sales, but still beyond the records of Apple which sold 350000 units of iPads and 300000 iPad2 units. Anyway the rate of selling is recorded as 2000 per hour !

Spec
  • 1024x600 screen resolution
  • 7.5 x 4.7 x 0.45 inches
  • 8GB internal storage (enough for 80 apps plus either 10 movies or 800 songs or 6,000 books, according to Amazon)
  • Fully charges in 4 hours
  • USB 2.0 port (micro-B connector)
  • 3.5mm stereo jack; top-mounted stereo speakers
  • Android 2.3
Features According to Amazon
  • 18 million movies, TV shows, songs, magazines, and books
  • Amazon Appstore - thousands of popular apps and games
  • Ultra-fast web browsing - Amazon Silk
  • Free cloud storage for all your Amazon content
  • Vibrant color touchscreen with extra-wide viewing angle
  • Fast, powerful dual-core processor
  • Amazon Prime members enjoy unlimited, instant streaming of over 10,000 popular movies and TV shows