Gizmodo, points out this cost doesn't cover R&D or shipping. It also doesn't cover labor which though they may be cheap in China still add to the cost. Or packaging. Then there is the storage and shipping within the U.S. (a lot were shipped free).
Whatever Whispernet costs on top of all of that, it seems to me that the Kindle 2 may not have a very large profit margin especially since it seems some of that profit is used to subsidize the lower cost of Kindle books.
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