Amazon's Kindle Fire, released in November, may wind up being more profitable than was expected, thanks to users' penchant for purchasing digital goods, according to a new research report from RBC Capital.
Though Amazon actually eats a loss of an estimated $18 for every Kindle sold due to manufacturing costs and other factors, the company makes up for it through sales of ebooks and apps, according to the report. Based on survey of 216 Kindle Fire Owners, RBC analysts estimated that over the course of three years, each Kindle Fire sold could earn Amazon $136.
"Amazon will break even on a Kindle Fire unit in less than five months, accounting only for direct digital good purchases," the report ... »read more

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