Amazon Kindle Fire will lose money but gain grounds on tablet market

[Pyree]

http://www.appleinsider.com/articles/11/09/28/piper_jaffray_estimates_amazon_will_lose_50_per_kindle_fire.html

So what do you think? Do you really think by selling Kindle, Amazon lose money on hardware? But wouldn't it be like a console? You buy the console for less than the hardware cost but the company end up with profit because you have to buy games, in this case, ebooks?

 

[Pyree]

That is why I am thinking Amazon may be using the console strategy. Sale the hardware below material price but earn the profit back from selling content.