Kindle 2 Cost Twice The Manufacturing Price
Recently-released figures are sure to upset Amazon’s top execs: the Kindle 2 e-reader has been thoroughly analyzed and unveiled a manufacturing price far below its retail one.
April 23, 2009
It appears that the display module is the most expensive component of the device. iSuppli approximates that the E Ink-manufactured module costs around $60, thus accounting for 41.% of the estimated cost of the e-reader.
It’s true, the study doesn’t also includes the Amazon’s expenses for include research and development, licensing and royalty fees. Furthermore, the fees Amazon pays to Sprint for the Whispernet service are missing as well, since the Kindle 2 maker chose not to disclose them.
Still, with the hardware costs adding up to only half of the final retail price, we may presume that Amazon is getting a nice profit from every sold device. In other words, customers willing to wait may do so, since the company should have enough room for price cuts in the near future.