Freescale's Cheap Chip Could Mean Sub-$99 E-Readers
eldavojohn writes "Last week, Freescale Semiconductor announced their i.MX508 chip and a few days ago released a rather bland and boring announcement that it's available. But there was at least one interesting line from that press release, 'The i.MX508 applications processor is expected to be priced at less than $10 (USD) in quantities greater than 250K units.' Yes, less than ten dollars. This sparked a wave of articles detailing how this new chip will allow the sub-$99 e-reader to emerge and according to market research, consumers are thirsty for something much more affordable than the Kindle."
According to isuppli's teardown of the kindle the E Ink display is $60. The main processor (made by Freescale) is ~$8. The EPD chip, which is what becomes redundant adds only $4.31 to the BOM. The main point is you cannot expect E Ink based readers to get any cheaper any time soon. Any price cuts will only come about due to increased competition from different technologies like Pixel Qi's, or by sacrificing things like onboard wireless (which adds ~$40 to the cost of the Kindle).
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