Amazon Kindle Fire Has 250,000 Pre-Orders in 5 Days
Amazon is said to have taken in more than 250,000 orders for Kindle Fires in the five days since it has been released. This is great news for Amazon as Apple sold 300,000 iPads, pre-orders included, on its first day of sales in the U.S. BlackBerry Playbook maker Research in Motion reported shipping 490,000 in its entire first quarter. Is this good news for Amazon though? Each tablet reportedly costs $210 to build, so the company is taking a big risk with such a low price tag as they could actually lost money on each unit sold. Amazon hopes to benefit from sales of entertainment and other services from the handheld platform in order to turn a profit.
A “virtual estimate” by the IHS iSuppli Teardown Analysis Service shows that the Kindle Fire’s bill of materials is $191.65 before manufacturing expenses. After that, it’s $209.63; roughly $10 more than the Kindle Fire’s $199 price tag — but that’s still less than half of an entry-level iPad, and cheaper than many other tablets, even after RIM and HTC’s emergency price reductions.
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