Amazon Profits by Losing Money on Kindle Fire

Kindle Fire
Kindle Fire

Market research firm iSuppli found that Amazon’s Kindle Fire costs the company about $210 to manufacture. While this loses Amazon $10 per device, the lost money to make money model is definitely going to net them future profit in content sales. Subscribing to Amazon Prime by itself, necessary for streaming video from its library, will set users back $79.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit



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