Kindle Fire Sold Below Cost?

"Amazon is selling the Kindle Fire below the cost of manufacturing the device, the research firm IHS iSuppli asserts.

The research firm says its preliminary estimate is that the bill of materials for the Kindle Fire is $191.65; adding manufacturing costs, and the estimated total for the $199 device is $209.63."

Source:

Amazon Selling Kindle Fire Below Cost, Analyst Contends. Savitz, Eric. Forbes.com, 9/30/2011

The article further states that Amazon is planning on increased sales of associated products to offset the costs of production. Certainly an interesting marketing strategy.