When Amazon announced their new Android tablet recently, the Amazon Kindle Fire, which will retail for $199, many people were wondering whether or not Amazon would actually be making a profit on the device itself.
A number of analysts came out with manufacturing costs for the Kindle Fire, which put the cost above the $199 price that Amazon will be selling the Kindle Fire for, suggesting that they would make a loss on the actual hardware, and would make their money from content sales.
Now according to the analysts over at Tech Insights, who have been working out some figures based on the parts used in the Kindle Fire, it would appear that Amazon will make a profit on the device, as they have worked out that the Kindle Fire actually costs Amazon $150 to manufacture.
Source Gadget Venue
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