There have been some questions why Amazon can sell its Kindle Fire for just $199 and there has been speculation that Amazon may be taking a loss with every Fire sold. IHS seems to confirm those rumors. According to a teardown conducted by IHS, the fire has a bill of materials (BOM) of $191.65. However, that does not include the cost of assembly. Including manufacturing, each Fire is estimated to cost Amazon $209.63. And even that price does not include shipping and secondary cost such as R&D and marketing and PR.
2DayBlog.com, Amazon to sell Kindle Fire below cost
