Amazon has a secret about their newest Tablet PC: the Kindle Fire.
It has to do with the cost. No, it is not the price, it is pretty well know that this new tablet retails for $199.
The secret has to do with how much Amazon makes from the sale of each and every Amazon Fire Tablet. Amazon is raking in a huge nothing profit. Yup, you read that right. Amazon makes no money from each Kindle Tablet sale. In fact it costs them 10$ more to produce these tablets than they sell them for. So they actually lose 10 dollars each and every tablet.
Now losing 10$ a tablet may not seem much to you and me. (Although every little bit counts in these tough economic times). But when you figure that Amazon could possibly sell 10-20 million of these units, you begin to see that this could be a loss in the hundreds of millions of dollars.
But why would Amazon be content to do this with the Kindle Fire tablet?
Why would Amazon be willing to provide products for only a loss? It is simple, Amazon.com views this modern tablet a "Loss Leader". (This is a merchandise that is sold an inexpensive price, or even sells for less than it costs to make, to promote sales and profits of various other products and services).
Many of the folks who shop for Amazon Tablet PC's will want to purchase additional add-ons. They may want to get the Kindle Fire "skins", Kindle Fire stands and power converters or even the warranty.
Amazon likely make-up any sales deficits from the purchase of these add-ons. They may even turn a small profit per sale on average ...but that is not the primary point.
The real reason behind Amazon's insane decision about the Kindle Fire pricing has to do with consumption of Electronic Media. Amazon has hand crafted the Kindle Fire Tablet to give the customer the very best in media consumption. Amazon wants to give consumers good reason to buy MP3's, streaming movies, digital books and all other forms of virtual products from them.
The future of this media consumption is important to Amazon because they are betting that devices like the tablet will be essential to this media consumption.
The neat thing about this is that Amazon normally has the most affordable prices anyway as well as providing the "gold standard" of services for this content material also.
In many ways, the Kindle Fire Tablet PC and Amazon. com are creating something you can use forever. Not really only a Kindle Fire Tablet life span but your life-time. So why not consider a little bit more specifics of this innovative state of the art Amazon tablet.
Why not check a Kindle Fire out as a present for a loved one, relative...or maybe for yourself.
