By Scott Levine
Is it possible that marketing minds were behind the pricing model on the new Amazon Kindle Fire?
It’s a logical conclusion, since Amazon is actually selling the Kindle Fire at $199, which is below the cost of manufacturing the tablet according to numerous reports including this one in the Wall Street Journal.
“The Kindle Fire, at a retail price point of $199, is sold at a loss by Amazon, just as the basic Kindle is also sold at a loss at the current $79 retail price point,” said Andrew Rassweiler, senior director of teardown services for IHS. “Amazon makes its money not on Kindle hardware, but on the paid content and other products it plans to sell the consumer through the Kindle.”