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.

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  • http://www.gamerzpedia.com Mark

    Well thats weird, never heard of someone doing a business which is not making a profit.

  • http://theaustonian.com/amenities Liza

    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.

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  • http://prepaidphoneguy.com/ Tracfone Reviews

    Ha! That’s a little confusing too! How come their sales resulted to that.

  • http://womeninspirations.com women inspirations

    The statement is contradicting. Perhaps that’s how some business run.

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  • http://www.sebastienpage.com/ Peter from Air Ambulance Company

    Oh..That is a big lost to them. Anyway, that’s a part of the reality in business. There are times you earn good and lost badly.

  • http://www.kronikmedia.co.uk/ JP from Web Design Blog

    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.

  • http://www.imobappdev.com Imran

    It means that they are actually earning from Kindle content. I think a good business strategy.

  • http://twitter.com/Valplan_Site Valplan

    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.