Amazon's recently announced Fire tablet is expected to cost just under $210 U.S. to manufacture and build according to a preliminary estimate by market research firm ISuppli Corp.
Announced last Wednesday, the Amazon Fire Tablet will sell for $199 and feature a 7-inch touchscreen, 8GB of storage, and dual core processor,
Since iSuppli could not get its hand on an actual Amazon tablet, the numbers are merely estimates and that a more accurate assessment will only be possible when a complete physical teardown of the Kindle Fire is done after the product begins shipping in mid-November.
iSuppli estimates the largest component cost is the 7-inch touchscreen with an estimated cost of around $87, followed by the main PCB at $70 and 8GB of memory costing about $25. Total component costs are estimated at $191.65 with manufacturing costs bringing the total cost to $209.63.
"The real benefit of the Kindle Fire to Amazon will not be in selling hardware or digital content. Rather, the Kindle Fire, and the content demand it stimulates, will serve to promote sales of the kinds of physical goods that comprise the majority of Amazon's business," IHS iSuppli said in a statement.
"When further costs outside of materials and manufacturing are added in -- and the $199 price of the tablet is factored along with the expected sales of digital content per device -- Amazon is likely to generate a marginal profit of $10 on each Kindle Fire sold," the research firm added.
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