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How the heck is Amazon going to make money on the Kindle Fire if it costs just $200? It’s not!Piper Jaffray analyst Gene Munster estimates Amazon will lose $50 per Kindle Fire sold.
So how will it make money down the road? In volume? Probably not.
Munster doesn’t say, but we’d guess Amazon thinks it can earn back those $50 (and more) through sales of books, apps, video, and other purchases on Amazon.com.
Also, this is Amazon, not Apple, we’re talking about. It has a history of losing money in the short term to make money in the long term.
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