/EINPresswire.com/Kindle Fire is getting hotter as more and more consumers are making preorders. Amazon CEO even hinted that the device is now at a shortage.
According to KindleVsNookShow.com, Kindle Fire remains the top-selling device in Amazon electronics. Its low price is the main factor that attracts consumers to purchase it. However, sold at $10 cheaper than its production cost, Amazon could lose big from its new tablet.
Analysts though said that Amazon plans on making up for the losses through its content. From movies, music and e-books that the top online shopping site can sell to Kindle users, not to mention its other goods, it can likely generate huge returns of investment.
With its low price, many are predicting that Kindle Fire will pose a big threat to Apple’s dominance of the technology market. Needless to say, that puts the fight between kindle vs nook at an end. And with the said new tablet now at a shortage, as hinted by Amazon CEO Jeff Bezos, more are getting convinced that the top online shopping site will surely make money from it.
Here is an excerpt from KindlevsNookShow.com news stating that Amazon expects a Kindle Fire shortage
Amazon has announced the release of its new tablet last September. From then on, Kindle Fire preorders kept on flooding in. However, a breakdown of its components shows that Amazon will lose $10 to each unit sold.
At $199, consumers will have Kindle Fire at more than half the price of iPad. Even compared to B&N’s Nook Color, the Kindle tablet is sold $50 less. And with that price difference, it’s easy to discern why between kindle vs nook, people are picking the android-based tablet.
According to analysts though, despite the low price tag of its latest touch-screen e reader, Amazon will make up for its hardware losses. Basically, it would be through the content that the users will have to purchase from the giant e-merchant. And that content includes music, videos and e-books. Amazon could even use the device to sell their other physical goods to the users.
Read more about Kindle Fire and Its Low Price
A breakdown of the components used in Kindle Fire shows Amazon is losing about $10 per tablet sold, lending credence to the view that the e-merchant sees the device not as a profit center but as a conduit for selling subscription media services and physical goods.
Analysts at market watcher iSuppli tore down the Kindle Fire and estimated that the total cost of its components is $209.63. Amazon is selling the tablet for $199.
The analysts said Amazon will make up for the loss through the additional sales generated by Kindle, particularly sales of physical, high-margin consumer goods. “The real benefit of the Kindle Fire to Amazon will not be in selling hardware or digital content,” said iSuppli. “Rather the Kindle Fire, and the content demand it stimulates, will serve to promote sales of the kinds of physical goods that comprise the majority of Amazon’s business.
More about Kindle Fire Sold at Low Price at: http://www.kindlevsnookshow.com/192/kindle-fire-sold-loss-gain/
Preorders for Kindle Fire are booming. Big thanks to its cheaper price. And because of its impressive sale number and hinted shortage, many are predicting that iPad will finally have a serious rival.
Kindle vs nook reviews reveal that Amazon’s new tablet is $50 cheaper. That knocks out B&N’s e reader off the competition. With that big difference in cost and probably in features, the top spot is for kindle vs nook vs ipad no more.
Today, the competition for the best-selling gadget is only between Amazon’s Kindle Fire and Apple’s iPad. Who will reign, time will tell.
Want more news about Kindle Fire? Check out http://www.onlineprnews.com/news/176095-1318623177-kindle-fire-demand-rises-but-is-there-any-left-kindle-vs-nook-show-reports.html
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KindlevsNookShow.com is a product review site. Specifically, it offers reviews about Kindle and Nook and delivers the latest news about the gadgets. The sites aims to help readers determine which e-book reader is best for them.
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