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> If Amazon really is making $50 per Kindle Fire sale that translates to $125 million in revenue on day one The author doesn't know what revenue really means.
by orijing 15y ago
> If Amazon really is making $50 per Kindle Fire sale that translates to $125 million in revenue on day one
The author doesn't know what revenue really means. Revenue is the total cash taken, not the cash left after paying the manufacturers. He means gross margins, although the 25% GM is dubious.
- cpeterso 15y agoAnd where did the author get the "making $50 per Kindle Fire sale" number? From what I've read, each Fire costs Amazon about $192 for parts plus $18 for manufacturing: http://www.isuppli.com/Teardowns/News/Pages/Amazon-Sells-Kindle-Fire-at-Low-Profit-Margin-to-Promote-Online-Merchandize-Sales.aspx http://www.isuppli.com/Teardowns/News/Pages/Amazon-Sells-Kin...
- PeterFruter 15y agoDid you not read the article? The author provides a link. Here's another one: http://www.eetimes.com/electronics-news/4228505/Kindle-Fire-profitable-at-estimated--150-BoM http://www.eetimes.com/electronics-news/4228505/Kindle-Fire-... p.s. Why do HN readers keep quoting iSuppli as though it's a trusted source? http://daringfireball.net/2007/07/isuppli http://daringfireball.net/2007/07/isuppli http://daringfireball.net/linked/2010/02/10/isuppli http://daringfireball.net/linked/2010/02/10/isuppli