02-26-2010, 01:26 PM | #1 |
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How much does it cost to build a Kindle?
$185 says this article from NPR
http://www.npr.org/templates/story/s...ryId=124107775 The article is actually abotu the decline symbolised by the inability to manufacture more of the device in the States. but it gives agood break down of the actual costs for the various bits. |
02-26-2010, 01:41 PM | #2 |
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A bit higher than I would have expected it to still be.
They really need to find a way to get costs down. Costing that much makes it hard to cut prices on e-ink readers--which will be critical (at least for large screen readers like the DX, Que etc.) when the iPad and other things start rolling out and do more for the same or less money. The avid reader's here will still go e-ink, but the casual readers will be turned way from pricey devices that only do one task in the front of the other gadgets. |
02-26-2010, 02:25 PM | #3 |
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The date of the article is current but the article cites the price of the CDMA chip so it looks like their information is a bit old. Still, I don't see the price going down all that much. The iSuppli breakdown of the iPhone 3GS was $179. Their 3.5" LCD touchscreen was $35 vs. $60 for the e-ink of the Kindle. We're so used to phones being subsidized we forget what they really cost. The Kindle has similar guts and a larger screen so I can't see how they're going to get it significantly cheaper. They could sell at a loss as the wireless carriers do but I'm not seeing where there's enough margin on books to make up for it.
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02-26-2010, 02:26 PM | #4 |
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How accurate is that number though? They're getting their data from a blog that is pulling it's data from an estimate by a market research firm. Sounds dangerously close to the "we made it up" realm.
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02-26-2010, 02:58 PM | #5 | |
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But as much as I like my Kindle, I can't see myself buying another e-ink device once the iPad and other tablets of various sizes etc. are rolling out unless e-ink devices are way cheaper. And it just doesn't seem likely to happen soon as the screen tech is just too pricey for big cuts. |
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02-26-2010, 03:05 PM | #6 | |
Bah, humbug!
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Last edited by WT Sharpe; 02-26-2010 at 03:10 PM. |
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02-26-2010, 03:30 PM | #7 | |
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02-26-2010, 04:20 PM | #8 | |
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This is why I wholeheartedly agree with you that tablets will be the way of the future for most people. They offer enough additional functionality that people will pay the higher price. The cheapest iPad may be twice the cost of the Kindle but it does so much more. Most people don't read enough to be bothered by the lit screen. Besides, some day there will be a color screen that is both fast and eye-friendly. At that point, a single-function reader will have no point. There may be a few people who would still want them but not enough to be more than a tiny niche. |
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02-26-2010, 04:28 PM | #9 |
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I agree with you Alisa, the article should not have said America can't make it, it should have said people wont want to pay what it would cost if it was made in America.
Your comment on the iPad is probably right on as well, but we probably wouldn't want to pay for that either if it were made here. |
02-26-2010, 05:11 PM | #10 | |
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And the color screens are so much better for magazines which are big among casual readers. Bigger screen (as well as color) is great for newspapers as well etc. E-readers are only worth it for avid readers, and prices aren't going to get down fast enough to keep tablets from becoming the e-reading device of choice in the mainstream. |
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02-26-2010, 05:45 PM | #11 | |
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I'd point out that the announced prices for SiPix readers seem to be substantially cheaper... |
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02-26-2010, 05:47 PM | #12 | |
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Competition is good for the customer. Everyone should love Apple and Macs if only because it pushes Microsoft to keep innovating and improving Windows... BOb |
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02-26-2010, 05:56 PM | #13 |
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nm....
Last edited by Dulin's Books; 02-26-2010 at 05:58 PM. |
02-26-2010, 06:06 PM | #14 |
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Everyone seems to be missing another cost to be factored in.
The cost of R&D and writing the software on both a unit and in Amazons case the server side software. For hardware, now that PVI own E-Ink and the investment they are making in new plant, volume should go up and prices down ( due to competition ) Maybe in 5 years everyone will be using collapsible AMOLED screens with reflective EPD qualities on a tablet |
02-26-2010, 06:21 PM | #15 |
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