Kindle Fire costs 202 to build according to iSuppli teardown

first_imgThat Amazon expects to make the bulk of its profits off the Kindle Fire after the original transaction is no surprise. Its tight integration with Amazon’s music, video, and ebook stores — as well as the Amazon.com shopping experience — is apparent as soon as you turn the tablet on. With a bill of materials of $201.70 according to iSuppli, owners will apparently need to make at least one Amazon purchase before the company ever sees a profit.iSuppli’s initial guess at the Kindle Fire’s cost was slightly higher, at $209.63. Ultimately, though, this new report based on a hands-on teardown is still a guess, too. iSuppli isn’t Amazon, and that’s the only place you’re likely to find truly accurate component and manufacturing costs.So, is iSuppli’s cost breakdown on the money? It seems a bit high when you look back at a previous teardown — the one UBM did of the BlackBerry PlayBook. The PlayBook’s estimated BOM came in at somewhere between $170 and $205.The Kindle Fire is essentially the same device as the PlayBook, but there are a few key differences that should make it less expensive to build. For starters, it’s got a smaller battery than the PlayBook. It also doesn’t include either the 8MP rear or 2MP front cameras, and its Wi-Fi module doesn’t include integrated Bluetooth. The Fire offers only 4GB of internal storage, as opposed to the PlayBook’s 16GB minimum.Does the Kindle Fire really cost the same to make than a similar tablet with a bigger battery, a pair of cameras, Bluetooth, and four times as much internal storage? It doesn’t seem likely. UBM’s own estimate of the Kindle Fire in early October pegged its BOM at around $150. That seems more probable, though as I mentioned before, unless similar figures ever come straight from the horse’s mouth these are all just educated guesses.More at iSupplilast_img