A research firm in Nov. said Amazon.com Inc.’s Kindle Fire tablet costs about $201 in a breakdown of component and manufacturing cost.
IHS Inc. said the Kindle Fire material cost will total $185.60. Adding manufacturing brings total production cost to $201.70.
The firm previously estimated the total cost of the Kindle Fire at $209.63.
The most expensive components in the device are the 7-inch IPS touchscreen at $87.00 and the main PCB board at $64.45.
IHS concludes the Amazon will profit from digital download sales of books, Movies & TV, and other product the offset the loss per sale of each tablet.
The Kindle Fire, which began sale 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.