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Kindle 2 Tear-Down Reveals Price of Components

Posted by timothy on from the venturing-to-gain dept.

adeelarshad82 writes "Amazon's wildly popular Kindle 2 got a good old fashioned tear-down from the folks at market research firm iSuppli. According to the organization, the Kindle 2's manufacturing cost is almost half as much as its retail price."

4 of 169 comments (clear)

  1. And you are surprised? by arizwebfoot · · Score: 5, Insightful

    the Kindle 2's manufacturing cost is almost half as much as its retail price

    So . . . ?

    Is this supposed to be some new business model. I remember working at Monkey Wards and they would raise the prices 400% and then have a 1/2 off sale.

    It's the American way.

    --
    Beer is proof that God loves us and wants us to be happy.
    1. Re:And you are surprised? by maxume · · Score: 5, Insightful

      If you are selling your entire production run of a physical good, cutting the price in half just means that you take in half the revenue.

      --
      Nerd rage is the funniest rage.
  2. And the other half... by rodrigoandrade · · Score: 5, Insightful

    Is R&D, marketing, distribution, and profit.

    Big deal.

    Why is this news again??

  3. How is this news? by stewbee · · Score: 5, Insightful

    Is it a surprise to any one that the manufacturing costs are not as much as retail? The article mentions cost to build, ie materials alone, is $185.49. I did not see mention of SW development, so to think that the rest is profit is just silly.