Gizmodo says:

That jaw-dropping $79 price point on Amazon's new Kindle just got a little nuttier: It turns out the thing costs $84.25 to manufacture, according to an exclusive report to Mainstreet by serial gear teardowner iSuppli.

Amazon operated at a loss for a long time back in the olden days, of course, but the frightened chickens of Wall Street don't have memories that stretch back that far. Between this and the Fire, Amazon is treading on dangerous ground; they'll make their money back eventually, if they sell enough devices. But expecting the stock market to put their expectations on hold while they take a bath for a couple of quarters is a serious risk nowadays.