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Amazon makes Rs.1,360 profit per Kindle Fire HD

Posted: 08 Nov 2012     Print Version  Bookmark and Share

Keywords:Kindle Fire HD  bill of materials  manufacturing cost  teardown 

"Amazon has taken an interesting twist on the 'memory upgrade for dollars' approach that Apple pioneered with the iPad line," Rassweiler said.

"There is a Rs.3,804.35 ($70) price difference between the 16GB and 32GB 8.9-inch models. However, there's only a Rs.2,717.39 ($50) gap for the same difference on the 7-inch model. That means Amazon makes a better incremental profit margin for the 8.9-inch 32GB model."

"The Kindle Fire HD 8.9-inch with LTE comes in 32GB and 64GB options. There is a Rs.5,434.78 ($100) retail price difference between the models. These price variations are interesting because the cost of NAND flash is approaching Rs.27.17 ($0.50) per GB in the market for commodity NAND flash, making these optional upgrades highly profitable for Amazon."

More Teardowns
Here is the list of teadowns complied by EE Times India.
 •  Microsoft Surface
 •  iPad Mini
 •  Samsung Galaxy S III
 •  iPhone 5
 •  Samsung Galaxy Note 10.1
 •  Google Nexus 7
 •  Nokia Lumia 900.

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