iSuppli: The Kindle 2 Costs $185.49 to Build

Illustration for article titled iSuppli: The Kindle 2 Costs $185.49 to Build

According to an iSuppli teardown, the Kindle 2 costs $185 to build—or about half the device's $360 sticker price. That's $176.83 in parts, $8.66 in construction costs. Here's the major component breakdown:

E Ink Display (by E Ink)
$60

EVDO (by Novatel)
$39.50

Baseband Processor (by Qualcomm)
$13.18

8-Layer Printed Circuit Board (by Multek)
$9.83

532MHz Multimedia Application Processor (by Freescale Semiconductor)
$8.64

Battery (by LICO Tech)
$7.50

Main Enclosure
$4.45

(Interestingly enough, the main enclosure costs more than the than the RAM or Flash storage.) Keep in mind that this price excludes Amazon's costs for EVDO service, along with the standard R&D, shipping, yada, yada. [iSuppli]

DISCUSSION

So I was actually thinking about buying a Kindle. The idea of getting books instantly and carry my library with me is appealing. But, $360 is a bit steep.

So, what I'd like to see Amazon offer is a Kindle Lite, which includes no cellular radio (requiring it to sync with a computer) and no keyboard. In other words, it'd look and act like most e-book readers, but it'd have access to the library of Kindle books, which appears to be quite vast.

Offer this smaller, lighter, cheaper Kindle at $200, and you'll have me hooked.