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Amazon losing $10 on each Kindle Fire? No big deal.

October 4, 2011

Kindle FireA few weeks ago I blogged about HP exiting the tablet market, and the dramatic price cuts on the remaining TouchPad stocks. My view at the time was that:

“When it comes to tablets, it’s all about content – over time, the device itself will become a commodity, like the paper used to produce books, and have little intrinsic value in itself.”

Now, news is out that Amazon is losing US$10 on every Kindle Fire it sells – which is not such a big deal, when you consider that Amazon is all about making money from content.

For years, I’ve always thought that the courier companies are the big winners from online shopping – but that looks under threat now that more and more books, CDs and DVDs will be replaced with digital files purchased and downloaded directly to the device.

It will be interesting to see the retail prices on the next versions of the iPad …

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