It seems there are conflicting reports on exactly how much Amazon stands to make on each device. This report claims that Amazon will be making $50 on each Kindle Fire.
I'm not sure which report is more accurate, but I will say this. A few years back Mr. Bezos said he treat the Kindle hardware unit separate from the Kindle software. Each must make money on it's own to exist. If he has been true to his word it would only make sense that the Fire is profitable and not losing $10/$50 per sale(--depending on what article you read)
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Amazon's $199 Tablet Is No Loss Leader
Based on its estimates of the bill of materials and cost for the Amazon Kindle Fire, iPad 2 and PlayBook, device experts at Light Reading sister company UBM TechInsights estimates that it costs around $150 to produce the 8GB Kindle Fire, compared to $170 for a 16GB PlayBook (the device it most closely resembles) (more...)
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