Amazon’s Kindle 2, an electronic book reader available from the online retailer since late February, retails for almost double what it costs to build the device, according to iSuppli. Its teardown analysis service said the Kindle 2 retails for $359 but only costs $185.49 to build.
As of April 16, nearly 300,000 Kindle 2 devices had shipped, suggesting the company has taken in more than $100 million from sales this year.
All parts involved in making the device total $176.83, but when components, including battery and manufacturing costs, are thrown into the mix, the price increases $8.66, according to the report.
That total does not include intellectual-property costs, licensing fees from software development, royalties, shipping and marketing.
iSuppli breaks down the cost by component, showing the display costs Amazon.com $60 and the wireless broadband module $39.95. Component costs under $5 include the main enclosure, the audio circuit, and the SDRAM.
Kindle 2 users can purchase more than 230,000 book titles, newspapers, magazines and 1,000 blogs with downloads in less than 60 seconds, according to Amazon.com’s marketing material. The first version of Kindle launched with only 90,000 titles. Kindle 2 holds more than 1,500 books, 1,300 more than the first version.
The Kindle 2 also has a 25 percent longer battery life, which allows users to read on a single charge for up to four days with the wireless feature on. If the wireless feature is turned off, the Kindle 2 can be read for up to two weeks.
Because the e-reader displays a page in 16 shades of gray and has a sharper display, it’s easier to read even in sunlight, according to the company. Andrew Rassweiler, a director and analyst at iSuppli, said the display is easy on the eye.
“The new version of the E Ink display in the…