Quote:
Originally Posted by MrT-Man
From the Wall Street Journal:
Amazon's price-cutting won't be cheap. The company said last year that its Kindle manufacturing costs were "significantly higher" than an estimate from iSuppli of $185.49. Costs likely have come down since then, and not offering cell-network access reduces costs as well. Still, it is a good bet the company is losing money at $139 a unit.
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But that's really just speculation still. Component costs can change dramatically in a year. Barring any hard facts I think it's just as reasonable to say Amazon is making a profit on the wifi Kindle.