Thread: Amazon’s Kindle 2 Costs $185.49 to Build, iSuppli Teardown Reveals
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Old 12-25-2009, 08:27 PM   #6
Kali Yuga
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Quote:
Originally Posted by kjk View Post
The second (and subsequent) ones costs $185 each to produce. The first one cost $30 million
Heh... Yeah, that's one of many problems with these "teardowns." People with no sense of manufacturing read it and think "wow, it cost $10 to make and they charge $100, we're getting ripped off." People don't usually consider all the associated costs: R&D, legal, taxes, customer service, marketing, retailer's cut (if applicable) etc etc.

I.e. knowing that a Kindle is allegedly made of $185 in parts doesn't really provide much accurate information about how much it really costs, or what profit Amazon is making on these things.
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