Friday, August 13, 2010

Prediction: Kindle WiFi Under $100 for Xmas

Farhad Manjoo, Slate Magazine: "Why am I so confident that the Amazon will slide under the $100 threshold? For one thing, because it probably can. Last year, the research firm iSuppli estimated that it cost Amazon $185 to produce a 3G Kindle, an estimate that covered the price of the materials and manufacturing, but didn't include the large costs associated with providing 3G service, customer support, marketing, and developing the device. After tearing open the Kindle, iSuppli reported that the two most expensive components are its E Ink display module (which costs Amazon about $60) and the 3G chip ($30). Why can the Wi-Fi version sell for so much less? For one thing, it doesn't have the 3G chip, nor will Amazon have to pay for 3G coverage for the device."