walkitout (walkitout) wrote,
walkitout
walkitout

breathtaking foolishness and something very clever

I've been seeing a bunch of "analysts" claim that it costs $250 to make a kFire. Given my husband finding the EEtimes estimate (based on Playbook BOM and some subtraction for the reduction in feature set) of closer to $150, this was a bit of a headscratcher, but seemed to be attributable to a guy at Piper Jaffray (I have my own reasons for a big ole eyeroll whenever that firm is named).

http://www.dailytech.com/Amazon+to+Lose+50+per+Kindle+Fire+Sold+Apple+Gets+150+per+iPad+2+Sold/article22875.htm

"Now iSuppli's numbers are hardly infallible, but given that the LCD market hasn't move much price-wise in the last year, for tablet screens, it can be assumed that the Galaxy Tab's 7-inch display cost in the bill-of-materials gives a good estimate of what the LCD touch-screen unit on the Kindle Fire costs. Combining this with the extra cost of the iPad 2's largest amount of onboard NAND memory, we estimate that the difference is indeed in the neighborhood of $100."

iSuppli is out there with a more recent estimate for the cost to build kFire that wasn't used. _Year old numbers_ based on the _wrong comparator_ were used instead. [ETA: And judging by the comments thread, even that was misunderstood.]

It's almost as good as book huffers explaining how ebooks will Never Ever Replace pbooks.

The article has a theory about how Amazon can make money on it anyway.

Someone in the comment stream provides more detail on the iSuppli numbers, and how they undercut the silly person from Piper Jaffray.

And now for something clever!

http://news.cnet.com/8301-30686_3-20113631-266/kindle-fire-or...ipod-touch-ask-maggie/

The kFire may not be an iPad killer, but the ipod Touch may take some serious damage.
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