A teardown analysis by IHS iSuppli reveals that Amazon.com’s Kindle Fire tablet most likely costs just a bit more to make than what it actually sells for, confirming "what everyone has suspected for a while — that Amazon expects to lose a little money up front on the $199 Fire, in hope of selling in volume," writes WSJ All ThingsD blogger Arik Hesseldahl. The digital retailer hopes to make more money on sales of the digital media and physical goods consumers may order from Amazon on the device, adds the blog. Amazon’s sales model with the Kindle Fire store is now generally understood to be essentially opposite to rival Apple’s precursor version of same.
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