Previous reports indicated that $80 Kindle costs more to make. Today I learned Kindle Fire BOM cost is actually $201.70. We all know that Kindle is a window into Amazon content and services and that is how the company is planning to make money.
But on top of BOM you need to account for costs of shipping the devices to users, maintaining infrastructure and 3G, tech and customer support, datacenters ...it all also contributes to 4% operating margins that Amazon's board finds acceptable.
But on top of BOM you need to account for costs of shipping the devices to users, maintaining infrastructure and 3G, tech and customer support, datacenters ...it all also contributes to 4% operating margins that Amazon's board finds acceptable.
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