Teardown: Kindle Fire Costs More Than Sale Price
Amazon is spending more to make each Amazon Kindle Fire tablet than it will make back from the sale price, according to a teardown released Friday by research film IHS iSuppli.
The device, the IHS iSuppli Teardown Analysis Service estimated, will cost $209.63 per unit to produce, including a $191.65 bill of materials, while the company is selling the device for $199. The company is spending $87 for the display and touchscreen of each device.
The cost, iSuppli found, shows that Amazon, in the quest for greater merchandise sales through its store, is "willing to settle for a razor-thin margin on sales of devices and digital content."