What does a Kindle 2 really cost?

Kindle 2According to a new iSuppli teardown, it reportedly costs Amazon.com just under $200 to build a Kindle 2 for you. $185.45 to be exact (minus R&D, marketing, distribution, etc.)

When you add up the prices for all the materials (such as the printed circuit board: $9.83, display screen: $60, Qualcomm processor: $13.18, rechargeable battery: $7.50, etc.) you come up with a number a lot less than the $359 that Amazon charges for it. Actual 49-percent less.

To be fair, Amazon’s asking price includes free data connectivity via Sprint’s wireless, 3G data network. Kindle doesn’t use much of Sprint’s EV-DO resources and free wireless is a terrific selling point.

My favorite fact is that the RAM and flash costs less than the outside enclosure ($4.45).

One Response to “What does a Kindle 2 really cost?”

  1. Paul says:

    My wife wants one of these.

Leave a Reply