It has been previously speculated that Amazon makes a loss on every Kindle Fire tablet sold, but recoups the money by profiting in sales of content. Well if you’ve ever wondered how much content Amazon sells because of the Kindle Fire; an estimation from Ross Sandler of RBC Capital (an investment firm that recently surveyed Kindle Fire owners) puts that figure at around $100 per tablet. That’s a lot of money considering that Amazon has been selling “millions” of Kindle Fire tablets and the estimation is a conservative one.
As to what Kindle Fire owners are spending their money on? Mostly books, according to the survey from RBC Capital, though apps come in at second place. With Amazon expected to sell 3-4 million Kindle Fire tablets by the end of this year, there is a lot of money to be made.Related articles: