I don't know that this is a correct analysis but the premise of the argument presented is that Amazon is taking a small loss up front, but in return they are ef

I don't know that this is a correct analysis but the premise of the argument presented is that Amazon is taking a small loss up front, but in return they are effectively shipping you a cash register into which you keep depositing money for Amazon digital and physical goods. If this proves to be correct, then the Fire would be increasing Amazon's sales on other high-margin goods, and the money lost on the device could simply be considered a form of customer acquisition cost.