The Kindle Fire is Amazon's first foray into tablets and is causing a stir in the tech world. With recent news reporting that its low price of $199 is $10 less than cost ($209.62), Amazon is depending on auxiliary sales generated by the tablet to bring in the profits. The online company is directly challenging the accessibility of Apple products and has priced its tablet debut $300 lower than the cheapest iPad 2.
Amazon CEO Jeff Bezos stated in a letter to customers: "There are two types of companies: those that work hard to charge customers more, and those that work hard to charge customers less. Both approaches can work. We are firmly in the second camp."