Kindle Fire virtual teardown puts cost at $209.63, about $10 above retail

Even so, the tablet is expected to be profitable by promoting sales of other goods

By , Computerworld |  Networking, Amazon, Amazon Kindle

The research firm also noted that Amazon likely saved costs by hiring Quanta Computer in Taiwan to manufacture the Kindle Fire. Quanta is the same company that makes the PlayBook tablet for Research in Motion. "Because Quanta engages in product design, it likely is repurposing much of the expertise it gained from developing the PlayBook for use in the Kindle Fire." Another company that conducts product teardowns, UBM TechInsights, reportedly estimated the cost of Kindle tablet materials at $150, with about $10 more for manufacturing costs, according to the Wall Street Journal . TechInsights could not be reached for comment.

The biggest difference is that TechInsights put the cost of the touchscreen and display at $60, which is $27 less than iSuppli's estimate. iSuppli also listed $11 for the plastic case making up the body of the Fire, while TechInsights didn't break out that item, the WSJ noted.

Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld. Follow Matt on Twitter at @matthamblen or subscribe to Matt's RSS feed . His e-mail address is mhamblen@computerworld.com .

Read more about mobile and wireless in Computerworld's Mobile and Wireless Topic Center.


Originally published on Computerworld |  Click here to read the original story.
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