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Originally Posted by stargazertony
We can do all the figuring or expected costs we want however, we just don't know what a manufactures costs really are and what deals they have cut.
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Volume makes a difference, and we don't know what kind of deal Amazon and B&N gets on the EInk screens, but
iSuppli says:
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“With these cuts, eBook readers from Barnes & Noble as well as Amazon now are priced at about the breakeven level with their Bill of Materials (BOM) and manufacturing costs, according to iSuppli’s Teardown Analysis Service,” said William Kidd, director and principal analyst, financial services for iSuppli.
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The Kindle 3 might be a bit cheaper than the Kindle 2, and the Nook is probably more expensive to make (two screens). Still, they are not taking a huge mark up at $139-$149. I don't think the parts for 3G cost $50, so there is more room for a profit on the WiFi+3G models.