Amazon will be down more than $10 before each new owner boots up their newly purchased Kindle Fire and begins purchasing digital content.
That’s because the Fire, priced at just $199, costs about $210 to produce, according to IHS iSuppli. The research firm noted yesterday that Amazon’s bill of materials for their incoming tablet is $191.65, with additional manufacturing expenses bringing the total cost of production to $209.63.
Amazon will make that money back and more with sales of digital content, according to IHS iSuppli analysts. The research firm expects the average sale of digital content will deliver a profit of about $10 per unit sold.