( CNN ) -- How did Amazon.com manage to build a tablet computer for less than the $ 199 price tag ? According to analysts ' estimates , the company could n't . In order to meet the low asking price , Amazon will sell the Kindle Fire at a loss when it debuts on November 15 , analysts said . The Internet 's largest retailer is apparently aiming to make up the costs by selling other goods , as it and other retail giants such as Wal-Mart Stores often do . Each Fire costs $ 209.63 to build , which includes paying for parts and manufacturing , according to technology research firm IHS iSuppli . That amount does not factor in research-and-development investments or marketing , executives for the firm have said . The preliminary estimate is typically based on analysts ' talks with people in the supply chain and does not change significantly once iSuppli is able to tear down the hardware for a thorough report , executives say . Shortly after Amazon 's announcement on Wednesday , Piper Jaffray analyst Gene Munster sent a note to investors saying Amazon is likely to lose $ 50 on each sale of the Fire . When factoring in marketing and other costs , Munster 's estimate could jibe with iSuppli 's . Another analyst group , UBM TechInsights , says the parts cost $ 150 , not including assembly . Even if this estimate is accurate , the margins for Amazon would be razor thin . Amazon is making a potentially expensive entrance into the tablet market with its aggressively priced tablet . The company could make up for the losses with digital sales or physical products bought through its online store using the tablet . It could also heavily market the Amazon Prime club subscription to Fire customers . Though , over what timeframe Amazon will recoup its costs is unclear . `` We 're very excited about tablet computers , '' Amazon CEO Jeff Bezos said in a television interview last year , `` because they have great Web browsers , and they make it easier for people to shop at Amazon . '' Factoring in projections for all of the e-books , music and video that customers will likely purchase for the device , Amazon is expected to turn a profit of $ 10 per Fire , iSuppli said in a statement . By contrast , Apple 's iPad 2 , the most popular tablet , costs $ 333.25 to make , iSuppli says . The iPad costs at least $ 499 at stores . Not including Apple 's expensive marketing campaigns , that 's more than $ 100 in profit on each sale with better margins for the more expensive models that have larger storage capacities . The strategy to lowball the price of a sought-after product in order to `` upsell '' customers on other merchandise is common for retailers , but is less so in electronics hardware . Hewlett-Packard has found buyers after slashing the price of its TouchPad tablet to $ 99 , which it only did because the company is discontinuing the product . However , the business strategy is not unheard of . Microsoft was able to break into the video-game market by selling the original Xbox , then the most powerful console , at a loss . In the next game generation , it took Sony years for the PlayStation 3 's manufacturing costs to come close to catching the price customers paid . In that industry , console makers reap licensing fees from game software publishers . Amazon , too , can try to make up its losses on software . It hosts an app store , digital music retailer , streaming video service and bookstore , all of which it takes a cut from . Not to mention the piles of nondigital stuff Amazon sells to be delivered to customers ' doors . The only thing missing from the Fire is an app to let the delivery person in .
Analysts say Amazon 's the Kindle Fire will cost more to build 199 . Selling the tablet for $ 199 is very aggressive compared to the $ than $ 199 iPad . Amazon.com is apparently hoping to make up the losses on media sales .