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[VentureBeat] Amazon’s $199 Kindle Fire costs $210 to build - Page 4

post #31 of 35
I don't understand why people assume amazon is looking to make mass profits from the hardware. That's quite short sighted. They have a huge push toward their "cloud" services, which will require yearly subscription fees. Amazon and kindle market sales, advertising revenue. Lots of businesses do quite well by virtually giving away the one-time purchase (or even selling it at a loss) in the interest of getting a solidified base that will pay for the recurring consumables that will net them the cost of the one-time sale hundreds of times over.

Also, I don't think those prices are accurate to what it's actually costing them to make the Fire (I think it would be a bit less TBH), but even if they were losing $10 per Fire, that's one more person that will be using their services--no doubt they can recoup that cost in a week if they wanted.
    
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post #32 of 35
Quote:
Originally Posted by CallsignVega View Post
Manufacturing costs $8, lol. Must be put together by 14 year old Chinese slaves like 90% of the stuff manufactured these days.
It probably doesn't take too long for assembly, so assuming several Fires can be put together in under an hour, that's already way more than the technician/slave makes for the whole day.
    
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post #33 of 35
Quote:
Originally Posted by DuckieHo View Post
It might be internal information... but the components are commodity parts. Many are avaliable from multiple manufacturers and Apple probably does not have an exclusive purchasing agreement with any of them. There's no magic in hardware assembly/sourcing.
Commodity pricing applies for commodities. Last I checked an IPS iPad screen, or a retina ip4 display, or A4 SOC all fall under the category of contracts which are under deep, deep NDA.

You can make an educated guess, but it's still a guess, not insider knowledge of Apples cost.
post #34 of 35
Quote:
Originally Posted by hellonwheelz View Post
Commodity pricing applies for commodities. Last I checked an IPS iPad screen, or a retina ip4 display, or A4 SOC all fall under the category of contracts which are under deep, deep NDA.

You can make an educated guess, but it's still a guess, not insider knowledge of Apples cost.
With an educated we have a pretty good idea of how much an iPhone 4 costs, which is roughly $200, which they turn around and sell for $600.

Quote:
Based on teardowns, the parts for an iPhone 4 cost $188. If you’d like a complete analysis of an iPhone 4 teardown, there’s a good one here, replete with pictures.

The labor cost is for a single iPhone is estimated to be $6.54.

So, in total, what Apple pays for an iPhone is about $200, a third of its retail cost.
http://theglitteringeye.com/?p=12837
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post #35 of 35
Quote:
Originally Posted by 2010rig View Post
With an educated we have a pretty good idea of how much an iPhone 4 costs, which is roughly $200, which they turn around and sell for $600.


http://theglitteringeye.com/?p=12837
You can guess all you like, but my response was to a guy who said "i work for att, i know how much it costs apple"

This may go right past you, but... there are such things as... investment, r&d, and oh! a little thing called software... You do know that software development costs money? Things like buying fingerworks, siri, in-house development, hiring security experts, and jailbreakers etc....

Apple has to pay all their bills off of the cost of hardware, they never adopted the spyware or adware or aggregate consumer data model of business.
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