Amazon estimated to lose $10 for every Kindle Fire sold

Out of all the tablets that have made its way into the market, the Amazon Kindle Fire tablet has been touted as being a true iPad 2 competitor. Based on the specs it’s not exactly the most impressive device around, but the reason why some are calling it an “iPad killer” is probably due to its price, which is set at $199.

Sounds like a steal, doesn’t it? And it is! According to reports, it costs Amazon an estimated $209.63, meaning that for every tablet Amazon sells they are losing $10. With such costs and a willingness to take a loss, it looks like Amazon is really going all out to beat the iPad in the tablet market. Amazon’s plans to recoup their losses and profit from their tablet is through the sales of digital media content, such as movies, music, ebooks, subscriptions and etc.

While we don’t play favorites when it comes to platforms or hardware, it’s refreshing to see a tablet like Amazon’s Kindle Fire who focuses on content rather than just boasting impressive hardware specs.