NEW YORK — Amazon.com Inc.’s Kindle Fire tablet, that started shipping this week, costs $201.70 to make, a investigate organisation pronounced Friday. That’s $2.70 some-more than Amazon charges for it.
The research by IHS indicates that Amazon is, during slightest initially, offered a inscription during a detriment that it hopes to cover by sales of books and cinema for a device. The production cost of a new tool customarily comes down over time as chips turn cheaper.
Amazon CEO Jeff Bezos told The Associated Press in Sep that a company’s idea was to make a tiny distinction from a hardware, though as a sell company, Amazon was peaceful to live with a smaller domain than many wiring companies would.
“We wish a hardware device to be essential and a calm to be profitable. We unequivocally don’t wish to finance one with a other,” Bezos said.
IHS’s guess includes a cost of components and assembly, though not a costs of development, selling or packaging. The many costly partial of a Kindle Fire is a 7-inch tone hold screen, that costs $87.
Amazon kept a cost of a inscription low compared to Apple Inc.’s iPad and identical tablets by creation it smaller – a shade is half a distance of that for a iPad – gripping a volume of memory low and incompatible a camera and microphone.
But a disproportion in production cost is most smaller than a disproportion in sell price: IHS puts a cost of a simple iPad 2 indication during only underneath $300, while Apple sells it for $499.
Article source: http://www.kentucky.com/2011/11/18/1964154/research-firm-amazon-tablet-costs.html
