The Tablet PC market can be an incredibly competitive place. While the iPad is the king of the hill for the moment, that doesn't mean there aren't a ton of different tablets that are trying to knock Apple's (News - Alert) product off their perch. Sometimes the competition gets so heated that companies do things that don't seem to make a whole lot of sense on the business side of things. 

Of course of all the companies to doubt on a business sense, Amazon is usually not one of them. The online retail giant seems to have done nothing but make sound business decisions over the last few years. One of those decisions was the release of their own tablet, the Kindle Fire.

A new report says that while there may be quite a demand for the Kindle Fire over the upcoming holiday season, the company won't be seeing a huge profit. As a matter of fact, if the report coming out today is accurate, the company will lose more money the more units they sell. 

IHS (News - Alert) has issued a report that says it actually costs Amazon $201.70 to produce one Kindle Fire. Considering that Amazon is, at least initially, going to be selling the Fire for $199, that means they are taking a loss of around two dollars per Fire sold. 

It appears that Amazon is looking to make up for the amount of money they are losing on the actual Kindle Fire tablets will be made up for through the sale of books and apps on the device itself. Amazon's CEO Jeff Bezos apparently foreshadowed this when the Kindle Fire was announced. 

Bezos said that because his company's main business is retail they would be willing to take in less revenue than other electronics companies. Certainly with Amazon's upcoming Black Friday like sales, the company appears to be poised some big time sales numbers.

It should be pointed out that Amazon has apparently managed to produce the Kindle Fire for less than what Apple pays to put together for the iPad. Of course the big difference in the two companies is that the iPad is charging enough over their production costs to make a nice profit. Amazon on the other hand has attempted to keep their retail price lower to lure in buyers.