Amazon Will Lose $50 For Every Kindle Fire Tablet Sold. Here's Why?

The article notes this, but the fact that Amazon is losing money on the hardware is irrelevant - it's so well connected to the rest of Amazon's service offerings that any loss on manufacturing the tablet will most likely be meaningless in the long run.

This is a gamble worth taking for Amazon - they have a ton to gain by undercutting the price of the Nook Color (not to mention the iPad and countless Android imitators).