Amazon to lose $10 on every Kindle Fire sale

Amazon are set to launch an attack on the iPad 2 very soon, by releasing their new Kindle Fire at $199. Less than half the price of Apple's flagship product. According to IHS however Amazon will be losing $10 on every sale of the new product.

Challenging the iPad has been a problem for every company who have tried so far. Amazon have probably the best chance of success, as they have a class leading store infrastructure already in place and customers have faith in the organisation to support and enhance the device after a purchase.

Amazon are estimated to sell 4.5 million Kindle Fire tablets in the fourth quarter alone. The faith in the company brand and the low pricing are sure to attract a huge audience who have yet to adopt a tablet.

The Kindle Fire has a 7 inch screen, which is almost 3 inches smaller than the iPad 2 (9.7 inch). It will run a special modified version of Google Android and will have full Wi-Fi connectivity and a dual core processor to power it all.

Kitguru says: We don't think they will be able to knock Apple from the top spot, but at that price there is a good chance they can claim the number 2 position within a very short time.

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