@Kali Yuga: Agreed. Costs often tend to be stack towards the beginning of a product lifecycle and generally only go down from there, and as you said it really depends on how they choose to present costs on the ledger.
One thing Amazon likely has is a reasonable grasp of the value of a customer, and some decent modelling for what profit they see themselves gaining with a device like the Fire acting as proxy.
That said the guestimates are such that I doubt they lose a dime on the hardware sold over a year regardless of other profits gained in content sales and such.
|