Amazon Will Lose $10 on Each New Kindle It Sells

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Now smaller, and in color.Photo: Getty Images

Turns out the spiffy new seven-inch color Kindle Fire, Amazon's latest gambit in the escalating tablet war, may actually cost more to make ($209.63) than consumers are being asked to pay for it ($199), according to iSuppli Research. Another market research company has predicted the Fire may lose even more, as much as $50 per unit. But apparently e-books and Kindles aren't ever all that profitable for Amazon to begin with. According to iSuppli, the e-retailer makes most of its money selling actual physical goods — clothing, health products, electronics — and expects buyers of the new Kindle will be more likely to use Amazon for their other consumption needs. Wal-Mart beware, looks like Amazon is lining up its crosshairs on you. [IBT]