> If Amazon really is making $50 per Kindle Fire sale that translates to $125 million in revenue on day one
The author doesn't know what revenue really means. Revenue is the total cash taken, not the cash left after paying the manufacturers. He means gross margins, although the 25% GM is dubious.
And where did the author get the "making $50 per Kindle Fire sale" number? From what I've read, each Fire costs Amazon about $192 for parts plus $18 for manufacturing:
The author doesn't know what revenue really means. Revenue is the total cash taken, not the cash left after paying the manufacturers. He means gross margins, although the 25% GM is dubious.