Amazon's New Kindle Fire Costs More to Makes Than it Sells For

It retails for $199, but reports say it costs nearly $210 to make.

Citing new estimates from HIS iSuppli said the components used in making the Kindle Fire cost $191.65 and additional manufacturing costs bring the total cost to $10 over the list price.

Good news for shareholders, Amazon.com (NASDAQ:AMZN) has a potential upside of 14.4% based on a current price of $216.23 and an average consensus analyst price target of $247.46.

Amazon.com is currently above its 50-day moving average (MA) of $211.62 and above its 200-day of $192.88.

Kindle Fire Falls Short of iPad2 in Price and Features

Amazon announced a new tablet today that will utilize Amazon.com and it's products to the fullest.

It will be called the Kindle Fire.

The Fire will have a 7-inch display and sell for $199 on Amazon.com. Compared with the $499 price for Apple’s cheapest iPad. The device, a souped-up version of the latest Kindle, will run on a version of Google Inc.’s Android software, the Seattle-based company said.

There is camera or a microphone. The device will connect to the internet through Wi-Fi, and there is no 3G access. It comes with a 30-day free trial of Amazon Prime, the company’s $79-a-year membership service that includes streaming video and free two-day shipping.

To date, Apple has controlled the tablet market with its iPad.  This $199 price along with Amazon's reputation and one-stop shopping makes this a very compelling product for the masses.