If you haven't heard of the Kindle Fire yet, you can read it right here. The Kindle Fire is the newest weapon to Amazon's armoury, and based on statistical reports on manufacturing costs Amazon is losing approximately $10 per tablet. Why, you may ask. If, the fact that Amazon is indeed losing money per slate is true, the main income in exchange would be the sales and services provided after sales. Read on for more information.
You might have known the trending price slashes of various tablets - the TouchPad, Flyer, and etc. Amazon took the risk (again if it is true) to manufacture the slates and sell them off lower than the manufacturing costs alone aims to prolong its business paradigm in continuous offerings of premium services and sales. But Amazon wouldn't be worried for its revenue - 95,000 pre-orders have been placed only on the first day. That's approximately one pre-order per second! Supposedly with this amount of slates on pre-order on the first day Amazon will gain a total of $950,000 revenue, regardless of the pricing of only $199.
Statistically, the Kindle Fire is notably a success as compared to all other Kindle products combined. According to eDataSource, the iPad racked a 350,000 sale on its first day, while the iPad 2 was reduced to 300,000 units sold. The Kindle Fire doesn't ship until middle of November so these figures could very well tighten up within the next two months. After all, who doesn't like a little market competency? Some people do not need the extra features a tablet offers, so this might be a decent choice as a little pocket companion for web-browsing, little entertainment features and more.
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