A new report has revealed that the build cost for Kindle 2, Amazon’s popular e-reader is $185.49. The E Ink screen’s cost makes up most of that at $60. The other major expense is the built in wireless card, which costs almost $40.
Before people start screaming that Amazon is greedy for pricing the device at $359, which is $173.51 more than what it costs them to make it, let’s remember users get free wireless internet service using Sprint’s EVDO network. I have a data plan and wireless card with Sprint and I pay $60 a month for the service. You also have to factor in advertising/marketing costs, shipping, licensing, the software, and other expenses.
I really doubt Amazon is actually making a $173 profit on each e-reader sold. The $359 price is still a bargain, especially when you compare it to some other e-readers like the Rex Iliad, which has models that start at $599 and go up to a whopping $859!
Bottom line? If you are an avid reader, the Kindle is still a great buy. Most books are cheaper than the paper version and there is a wealth of free and low price (and I mean low-I’ve gotten some books for as little as a penny!) books available for the device as well. As with any device, its worth to you is what determines whether its price is worth paying.
Read [PC World]
The EVDO wireless service isn't free. It's built into the cost of downloading the content. So the cost of the Kindle device should cover the cost of the Kindle device, period. And the market will decide whether it is priced fairly or not.
I like the idea, for I have a similar invention, I would love to introduce to the inventor of the Kindle. Is that possible? As for price I leave it in the hands of the beholder, and the market will dictate the outcome.
HowardBush/Inventor