Originally Posted by Jetz
A lot of comments here sound a lot like what people said about Android and the iPad when it launched.
I think most people can understand the appeal, from the (potential) consumer end. What I, and others, are questioning is how exactly Amazon plans on making money.
If it's true that they are selling each Fire at a loss, then they have to make-up for that loss through profits that are driven by someone owning the Fire.
I don't know enough about Amazon's business to know if this is possible, likely, or whatever. I also don't know if there are enough untapped markets in which Amazon can use the Fire (where they couldn't have relied on simply making money their old fashioned way). I just don't know.
But selling a piece of hardware at a loss, and hoping that people will gobble up content for a small margin, thus recouping the initial loss and leading to profits ... that sounds like at least a semi-dangerous plan, in this particular market. Doesn't it?