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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) 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.

Desire worked at ITProPortal right at the beginning and was instrumental in turning it into the leading publication we all know and love today. He then moved on to be the Editor of TechRadarPro - a position he still holds - and has recently been reunited with ITProPortal since Future Publishing's acquisition of Net Communities.