Amazon will lose $ 50 on each tablet.

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

Obviously, this Amazon’s “unprofitable” strategy is aimed at capturing the market, after which the investment will more than pay off sales of the same software and digital books. Due to dumping, you can increase sales of tablets by an order of magnitude, as the HP TouchPad example remarkably demonstrated.

However, the Kindle Fire has obvious drawbacks compared to the iPad: two times smaller screen (7 "vs. 10"), two times less memory (8 GB), no camera and no 3G support. One of the main advantages is the pre-rendering technology of Amazon Silk web pages (as in Opera Mini), which provides faster surfing and battery savings.
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According to analysts from the company Piper Jaffray, the share of Apple in the tablet market during the year will fall from 90% to 60%, while the share of Android will grow from 10% to 30%, and the Kindle Fire will receive a significant portion of these 30%.