Amazon Hopes Kindle Fire Will Spark Sales

Sam Lincoln, Assistant Working Editor

Amazon already has almost 100,000 preorders for its first tablet using the Android operating system, the Kindle Fire, not set to arrive until November 16th. But for each tablet sold, Amazon actually loses money. The Kindle Fire, the first full color Kindle, costs $209.63 to manufacture but retails for $199, much cheaper than similar devices such as Apple’s iPad or RIM’s BlackBerry PlayBook. Amazon hopes that although the Kindle Fire will create a small cut in profits, more people will be drawn to buy it because of its low price and then buy more Amazon products. The Kindle Fire is set up to be automatically connected to Amazon’s online store.