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Amazon Kindle Fire: Profit or loss for retailer?

Is Amazon losing money or earning a profit from the sale of each Kindle Fire tablet? Analysts seem to be at odds over that question.

In an investor note issued last Wednesday, Piper Jaffray analyst Gene Munster calculated the manufacturing cost of each Kindle Fire at $250, leaving Amazon with a $50 loss on each $199 tablet that it sells. Munster said he based that estimate on the cost of the iPad.

Related stories: • Amazon could sell 5 million tablets next quarter • Kindle Fire leads Amazon onslaught (roundup) • Kindle Fire sets a new (low) price point for tablets • Why Amazon's Kindle Fire is like a razor • Amazon to lose $50 on each Kindle Fire, says analyst

But other analysts have chimed in with different opinions and estimates.

UBM TechInsights believes Amazon is actually making a profit on each Kindle Fire. Estimating manufacturing costs as low as $150, the research firm pegs Amazon's profit per tablet at $49.

In comparison, RIM spends around $170 to make its BlackBerry PlayBook tablet, which reportedly gave Amazon some "design clues" for the Fire. The retailer was able to cut its costs by eliminating certain features found in the PlayBook, according to EE Times, which is published by UBM's parent company.… Read more

Comdex to be reborn as a virtual trade show

Following its 2003 demise, Comdex is springing back to life in a virtual way.

UBM, which bought the Comdex name as part of an acquisition in 2006, is relaunching the once famous tech trade show as a virtual event to take place November 16 and 17.

In the old, pre-virtual days of computing, Comdex was one of the hottest trade shows in the business. Each year's event drew in around 200,000 visitors and 2,300 exhibitors who flocked to Las Vegas for the latest and greatest technology. But as the tech boom slowed and Comdex lost its focus … Read more