Money Loser

Apparently, Amazon sold millions of Kindle Fire. That’s great for them, but when you know that Amazon actually loses $10 per Kindle Fire sold, it makes you think…

Amazon says: we sold millions of Kindle Fire.

Translation: we lost millions of dollars.

Of course, Amazon’s strategy is to recoup its losses by selling content to Kindle Fire users, especially via the $70 Amazon Prime membership. That’s a gamble though.

In comparison, Apple makes $200-$300 per iPad sold. And that’s money going straight to the bank.

11 thoughts on “Money Loser

  1. Wow, this is interesting. I never thought about this. It’s like selling luxury condos for a much lesser price, then earn back the losses by telling the owners to pay for other stuffs for the condo that should only be bought from the management. Thank you for sharing this information.

  2. What would you do for money?… A lot people are earning money from everywhere just posting their services from this site. Check it out.

  3. Very interesting point. Although it may initially appear as a gamble, you can see that it can be winner for Amazon if it works out as planned. Paid content model is only going to get bigger each year. I think its a calculated guess by Amazon that whoever buys a Kindle will ultimately need to buy content too. That said, I just don’t see adding an extra $10 to the prices resulting in any loss of sales.

  4. Wow, this is a big loss, considering how many Kindle Fire’s have been sold. They should know better than to try to compete with the iPad.

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