Amazon will lose $ 50 on each tablet

According to analysts, the retail price of the new Kindle Fire tablets is about $ 50 lower than their cost. In comparison, Apple iPad tablets are sold at 30% higher than cost.

Obviously, such a “loss-making” strategy of Amazon is aimed at capturing the market, after which the investment will more than pay off by selling the same software and digital books. Due to dumping, it is possible to increase the sales of tablets by an order of magnitude, as the example of the HP TouchPad has remarkably demonstrated.

However, the Kindle Fire has obvious drawbacks compared to the iPad: half the size of the screen (7 "versus 10"), half the memory (8 GB), lack of a camera and 3G support. One of the main advantages is the Amazon Silk web page pre-rendering technology (like in Opera Mini), which gives faster surfing and saves battery life.

According to analysts at Piper Jaffray, Apple’s share of the tablet market will drop from 90% to 60% over the course of the year, while Android’s share will increase from 10% to 30%, with Kindle Fire gaining a significant portion of these 30%.