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.
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.