each Amazon Kindle Fire cost $209.63 in parts and assembly meaning that Amazon is taking about a $10 hit on each tablet it sells, which sounds like a number easily made up by offering users other Amazon provided features. After all, a 1 year subscription to its Prime service costs $79 alone, for unlimited streaming movies. Just about every movie watched or note heard by a Amazon Kindle Fire user will come through the manufacturer.
As for the tablet, the most expensive part of the device is the LCD screen priced at $87 and the dual-core TI processor and other components to its mainboard added up to $70.40. IHS iSuppli figures that after selling users the content and other services, Amazon is actually turning a $10 profit on each tablet sold. And with the $199.99 price of the 7 inch device, you can expect that the Amazon Kindle Fire will be one hot-selling product this coming holiday season.
source: IHSiSuppli via electronista