Amazon’s Kindle Fire hardware cost has been re-evaluated by analysts from IHS Isuppli and is less than previously thought.
IHS iSuppli now reported that Kindle Fire costs $201.70 to build which is $3 more than tablet’s retail price. IHS Isuppli reported a while ago that Amazon is loosing $10 per Kindle Fire but now it seems that the hole in Amazon’s pocket won’t be that deep.
Isuppli also reported that the Fire’s hardware costs $185.60 plus a manufacturing cost of $16.10. A few days ago UBM Techinsights reported that total cost of the components inside the Kindle Fire is $143 which is different than the current estimate.
The display and touchscreen costs the most in the latest estimate, a total of $87. The memory, processor and wireless LAN plus other peripherals cost $64.45. The battery costs $16.50, the case $14.40 and the contents inside the box $3.25.
“The Kindle Fire, at a retail price point of $199, is sold at a loss by Amazon, just as the basic Kindle is also sold at a loss at the current $79 retail price point,” said Andrew Rassweiler, senior director, teardown services for IHS.
“Amazon makes its money not on Kindle hardware, but on the paid content and other products it plans to sell the consumer through the Kindle.”
ISuppli also stated that the 1GHZ TI OMAP 4430 dual-core processor costs $14.64, the same model that is used in the Blackberry Playbook, Motorola Droid Bionic and LG Optimus 3D.
Via : ComputeWorld