iSuppli: Kindle Fire Production costs more expensive than the retail price

Experts "harvesting machine" at IHS iSuppli found that, to spend $ 201.70 to build a new Fire tablet Amazon Kindle - nearly 3 USD more than 199 USD retail price of the device.

Many analysts expected, the Fire Kindle, Amazon will lose much more if only to better compete with the tablet such as iPad 2 (with a starting price of 499 USD) or Nook Tablet (with prices starting at 249 USD). Amazon is expected to offset losses through the sale of products and applications to users Kindle Fire.
According to iSuppli's tally, the Kindle hardware cost is $ 185.60 and Fire equipment manufacturing cost is $ 16.10.
$ 201.70 figure is the actual cost estimates derived from the "harvesting machine" one tablet Kindle Fire were released on Monday, 14/11/2011. This total less than $ 7.83 compared to $ 209.63 Virtual estimates that iSuppli made in the month 9 / 2011.
As with most of the tablet, the latest estimates, the screen and touch panel are the largest cost to the rounded total is 87 USD. The cost of memory, processor, wireless LAN and other peripherals is $ 64.45, while the cost of batteries is $ 16.50. Case is $ 14.40 and the contents of the box is $ 3.25.
iSuppli said processor is 1 GHz dual-core chip from Texas Instruments OMAP 4430 cost $ 14.65 - 7.9% of total costs. This processor is also used in tablet PlayBook BlackBerry smartphones and Motorola Droid Bionic, LG Optimus 3D.
iSuppli said that their virtual estimate includes assumptions Kindle Fire will have 8 GB DDR2 DRAM memory. However, the device is actually launched with 4 GB of memory provided by Elpida.