A research firm in Sept. said Amazon.com Inc.’s Kindle Fire tablet will cost about $209 in a breakdown of component and manufacturing cost.

IHS Inc. said the Kindle Fire material cost will total $191.65. Adding manufacturing brings total production cost to $209.63.

The most expensive components in the device are the 7-inch IPS touchscreen at $87.00 and the main PCB board at $70.40.

IHS iSuppli Research estimates that sales of digital content from Amazon will generate an average profit of $10 per Kindle Fire sold.

In addition the firm expects sale of physical goods sold at Amazon.com to generate larger profit for the retailer.

The Kindle Fire, to be sold Nov. 15, includes a full-color 7-inch multi-touch IPS display, Dual-Core CPU, 8GB Internal Memory, Wi-Fi functionality, and up to eight hours of battery life at $199.00.

Applications include the Amazon Silk Browser, E-Mail, Amazon Instant Video, Amazon Appstore, and Amazon Cloud Drive with unlimited cloud storage for Amazon content.

Finally, each Kindle Fire will include a free month of Amazon Prime membership.

Amazon this week announced new Kindle models including the Kindle at $79.00, the Kindle Touch with touch display and built-in Wi-Fi at $99.00, and the Kindle Touch 3G which adds free 3G wireless functionality at $149.00.

The iPad, which currently dominates the tablet market at 30 million units sold, shipped 9.25 million units in the third quarter of 2011.

Market demand has been fickle for Android-based tablets. Products like the XOOM from Motorola Mobility Inc. and the Galaxy Tab from Samsung Electronics Co. Ltd. have failed to make a significant dent with consumers due to $400 to $600 price tags.

HP Aug. 19 price cut the TouchPad 16GB SKU to $99.99 from $499.99 and the 32GB SKU to $149.99 from $599.99 due to lackluster sales.

Follow us on Twitter @PunchJump, @WeLoveHotDeals, @PreOrderBonus, and visit us at Facebook.

 

Comments are closed.