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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.