So how much does the Kindle Fire cost to make?
Most reports suggest it cost more to build than what Amazon sell it for– at a loss in order to gain profit from sales of ebooks and other Amazon properties.
However, that may not be the case, according to TechInsights the Amazon Kindle actually cost about $150 to make which yields a profit of $50 per Kindle sold.
As you can see on the table above (via lightreading) the kindle was broken down by parts to predict the cost of the device. It comes to a total of $150 which comes in cheaper than the BlackBerry Playbook and iPad 2.
This will make a healthy profit for Amazon, which have sold about 6 million Kindle’s this quarter. Combined with the sales of Kindle books, it is going to be a good year for Amazon.
Amazon intentionally kept the cost low to appeal to an audience that likes a good bargain; most tablets start at at least double the price of the Kindle because it is packed with hardware features that some people really don’t need.
Amazon is dominating the low end tablet market whilst Apple is dominating the high end tablet market, however, I doubt these two companies are a threat to each other.
Although, Amazon’s Kindle is a threat to other Android tablets, according to data by Flurry, Kindle has 36 percent of the market share. This is terrible news for Samsung Galaxy Tab, which is losing it’s dominate market share to the Kindle.
The data suggest the Kindle will soon take over the Samsung Galaxy tab and dominate the android tablet market. The Kindle will likely take over when it is released to more countries internationally.