Amazon Unlocks Fire Phone & Slashes Price

[tubemonkey]

Originally Posted by rcentros

I don't know about that. What is the cost of the hardware for their $199 phone? I know the labor is probably in the neighborhood of $4 or $5 a unit (if that).

According to IHS, about $201.

The BOM of the Amazon Fire Phone equipped with 32 gigabytes of NAND flash memory amounts to $201, according to a preliminary estimate by the Teardown Mobile Handsets Intelligence Service at IHS Technology. The cost of production rises to $205 when the $4 manufacturing expense is added.

[rcentros]

Originally Posted by tubemonkey

According to IHS, about $201.

I guess I'll take their word for it -- but I'm a bit skeptical.

[tubemonkey]

Originally Posted by rcentros

I guess I'll take their word for it -- but I'm a bit skeptical.

They do make a living tearing products down and selling detailed reports of components and costs.

[rcentros]

Originally Posted by tubemonkey

They do make a living tearing products down and selling detailed reports of components and costs.

Yeah, but do they take into account the volume involved and the fact that costs drop as the components age? I.e., are these costs per unit (as you and I would buy them) or cost per unit in the volumes Amazon would buy?

[tubemonkey]

Originally Posted by rcentros

Yeah, but do they take into account the volume involved and the fact that costs drop as the components age? I.e., are these costs per unit (as you and I would buy them) or cost per unit in the volumes Amazon would buy?

I'm sure they do; otherwise, they'd lose their corporate customers. This is a billion dollar corporation.

Do you think it costs Amazon less to produce this phone?

[DuckieTigger]

Originally Posted by tubemonkey

I'm sure they do; otherwise, they'd lose their corporate customers. This is a billion dollar corporation.

Do you think it costs Amazon less to produce this phone?

I think the labor involved into the phone from start to finish is a lot higher - the assembly might cost $4, but don't all the components need to be made as well? Would be interesting to know (interesting to me) how much all labor is.