(Credit: Josh Miller/CNET)
Amazon spends $207 to build a Kindle Fire HD, which means the company is still losing money, but not as much as it did with the original Kindle Fire, according to the results of a teardown by research group IHS.
The company broke down the cost of a low-end $199 Kindle Fire HD -- which has a 7-inch display, 16GB and is Wi-Fi wireless only -- in its report. The report says materials and production costs Amazon $147. IHS estimates that the added cost of other expenses like software, licensing or royalties, would put the device's cost at $207.
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Amazon is willing to take the loss in exchange for growing its customer base, which will mean more users for the content it sells.
The company was able to make the Kindle HD Fire for less than its predecessor despite having better features like increased memory, a better processor and the addition of a camera, IHS noted. Analysts found that Amazon was able to save the... [Read more]
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