I may or may not have more today about Amazon’s big announcement today, but I would like to respond quickly to this question from John Gruber:

My question, though: if it’s based on or even just very much similar to the BlackBerry PlayBook, why is the Kindle Fire only $199 and the PlayBook started at $499?

The answer to this is that RIM sells devices and Amazon sells content. BlackBerrys are sold at a profit; Kindles are loss leaders for eBooks. The Kindle Fire will be a loss leader for books, movies, apps, music, magazines, and newspapers. Indeed, this report suggests Amazon will sell Kindle Fires at a loss of roughy $50 per unit.

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