Quote:
The fact that the company is projecting a possible operating income loss all but confirms that its losing a lot of money on the Kindle Fire. In the earnings release Amazon says, "Based on what we're seeing with Kindle Fire pre-orders, we're increasing capacity and building millions more than we'd already planned.”
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Maybe it costs a lot of money to manufacture several million devices that haven't been sold yet. Pre-orders don't charge til delivery. It doesn't "confirm" anything about the Fire's profit margin. Sure Amazon could be more transparent about the issue, but it doesn't excuse market analysts citing third party estimates as fact.