A recent analysis has discovered that the new entry-level Amazon e-reader is sold for less than it costs to manufacture.
The report by iSuppli suggests that the recently launched $79 (€58) Kindle, part of a new range of the e-reader family, costs $84.25 to make, including $30.50 for the device's 6-inch E-Ink display. The market researcher estimates manufacturing costs at $5.66 per unit. The report notes that manufacturing costs do not include development, shipping or distribution. Instead, Amazon is making money through adverts appearing as screensavers, as well as through sales of sales through its online stores, states ABC News.
Amazon has not announced how many of the new Kindles it has sold, or how many new subscribers it has added to its services.
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ABC News report
Analysis Says $79 Kindle Costs $84 to Make
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