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iPad 2 Rival Alert : Amazon Almost Breaks Even On Kindle Fire Tablet

An analyst firm has carried out a teardown analysis on the Amazon Kindle Fire tablet and found out that the cost of the components, commonly known as the Bill Of Materials, amounts to $202.

This is higher than the retail price of the tablet - indicating that Amazon is indeed losing money on the device - and far superior to the estimated cost (via UBMtechinsights (opens in new tab)) for the RIM Blackberry Playbook whose BoM was found to be around $190 for the 16GB model.

The 32GB Motorola XOOM has a BoM of $278 while the cost of components of the iPad 2 tablet totals around $270. The Kindle Fire is essentially a reworked version of the BlackBerry Playbook but with less memory, no camera and less onboard storage.

This could well mean that there has been a component price inflation between when the Playbook launched and now. Other associated costs include accessories like cables and a box which IHS iSuppli says, should be less than $3.

There have been rumours in Taipei that pure PC manufacturers such as Acer or Asus may be exiting the tablet market altogether, after the arrival of Amazon and Barnes & Noble along with Apple, who all manage to tie up their tablets with an existing content ecosystem.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.