Amazon Kindle Fire Sale in IPad Challenge Narrows Margins: Tech
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Amazon.com Inc.’s profit margins, already at a five-year low last quarter, are set to narrow next year as the world’s largest online retailer sells its new tablet computer for half the price of the iPad.
The Kindle Fire will go on sale next month for as little as $199, compared with $499 for the cheapest tablet from Apple Inc. The lower price will help Amazon sell 4.5 million Kindle Fires in the fourth quarter, according to Barclays Plc, topping the 3.3 million units Apple reported for iPad’s debut quarter. It also means Seattle-based Amazon loses about $10 on each tablet, according to IHS Inc.