Amazon Losing $10 on Every Kindle Fire

Previous HN discussion:

http://news.ycombinator.com/item?id=3058207

By the way, HN Search was an epic fail at finding this earlier thread, but it easily turned up in a site-restricted search on Google.

Well, this just exemplifies what everyone has been saying; that amazon's business model isn't the hardware, it's what's sold after that initial buying of the hardware.

So they lose $10 per tablet, but people buy a lot more then that in merchandise.

Razors and blades. They'd give them away if they had guarantees people would purchase enough stuff through them.