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."

Comments

But what about the cost of e-ink?

[Anonymous Coward]

I seriously doubt it's the processor that's causing the Kindle to be so high priced. It's most likely the costs of using the e-ink screens.

Re:But what about the cost of e-ink?

[godrik]

I also think that the display is the main cost. But the network interface are not that cheap as well. And I think the main cost of the kindle may be the 3G internet access.

Re:But what about the cost of e-ink?

[Kell Bengal]

See, that's what the sensible person would think. But note, if you loaded books via USB, how could they tether you to their expensive online bookstore? How would they upsell to you? Gasp - you might even buy PDFs from a competitor!

Absolutely

[Pojut]

consumers are thirsty for something much more affordable than the Kindle.

I know I sure as hell am. The price of entry is the only thing that has stopped me from getting an eReader. I would love to not go over $100 for a good-quality eReader, but $150 would be my firm limit. I realize that e-ink screens are the primary thing driving the prices up for now, but hopefully with things like this new chip combined with new processes of putting together e-ink screens will bring the price down.

Despite how much I complain about it around here, I would be willing to pay the same if not slightly higher for ebooks as I would for dead tree books if only the eReader itself wasn't so damn expensive.

Re:Absolutely

[samuraiz]

I have more than $260 worth of shelving for my dead tree books, and I buy cheap shelves. There are infrastructure costs associated with any kind of book ownership.

Really wont change the price

[quo_vadis]

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).

Re:Really wont change the price

[gad_zuki!]

>by sacrificing things like onboard wireless (which adds ~$40 to the cost of the Kindle).

Its not wifi chips that are expensive its the EVDO and the deal Amazon has with Sprint that's expensive. I dont need a EVDO ebook reader. Wifi is good enough. Just give me an offline option if I cant get it on wifi someplace (copy file to USB drive and insert it into ebook reader). Really, there's a huge hole in the market for sub $150 dollar ebook readers. Its probably doable with a smaller eink screen and lack of bell and whistles. The Sony pocket edition reader is pretty close.

Re:Why would I want one again?

[Abcd1234]

Plus, they're great for reading in bed. Anyone who's tried to read lying on their side knows how much of an *enormous* pain in the ass regular paper books are. It's just not doable. But an ereader is perfectly comfortable.