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Originally Posted by webroot
Do you have any proof to back above statement, it doesn't look like selling ereader is more of non-profit, because all hardware they use is very entry level. If a powerful raspberry Pi can be offered for 35 USD then a kindle which less than half in specs should hover around same range assuming that they have added screen and plastic around. Also consider that raspberry may not be mass produced at the same scale.
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That is because a Raspberry Pi does not include most of the components of an ereader
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Funny that i have a tiny USB modem with ARM7 processor and 512MB of ram, double in power than a basic kindle. Keeping the cost down is good thing but it is not true Amazon is NOT making decent profit from it. You know in shopping mall near my place kobo reader was offered at about 32 USD where original price was approx 115 usd, they found no market for kobo reader and moved to kindle only, and I dont thing they sold last stock at loss.
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Do you have any particular
reason for thinking they did not sell them at a loss?
It is a rather common business tactic, to dump stock that costs more to warehouse than they will make on the profit margins.
Quote:
Originally Posted by webroot
Was that from companies periodic balance sheet? Well I dont have any figure but I gave some logic. Btw this is out of my understanding if Amazon can make profit from both, then why they would give away kindle and rely on eBook sales alone.
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It is based off of independent groups buying a Kindle, disassembling it, and valuating the components at the current market price for buying said components at bulk prices. Amazon has never said a word AFAIK about how much it costs to make a Kindle.
It has been
empirically verified that Amazon does not make a profit off of Kindle e-ink hardware. And I don't think anything would have changed since the last reports I read. (Last year? 18 months? Can't remember...)
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If I put it differently right now average price of tab is 210$ and if you buy 5 - 6 years old tablet or phablet that are closer to amazon kindle then how much it would cost? ask yourself !!
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I have no idea what you are trying to say, but since you mentioned tablets (somehow), then ponder this: tablets aren't e-ink ereaders, and any attempted comparison is doomed to inherent failure. That includes trying to put a price on the components.
I believe the most expensive single component in an ereader is the screen. E-ink screens are not made in the same quantity as LCD screens.