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FillG
I for one, put the Kindle Fire on my Christmas wish list. I played with it for ...
elctrnx_lyf
But the BOM cost that Apple spend will definitely be much less because of the ...
TechInsights says Kindle Fire BoM about $143
Dylan McGrath
11/16/2011 12:20 AM EST
SAN FRANCISCO—The bill of materials (BoM) cost of Amazon's Kindle Fire media tablet is roughly $143, lower than some analysts estimated previously, according to a preliminary teradown analysis conducted by market research firm UBM TechInsights.
The Kindle Fire processor is the OMAP 4430 from Texas Instruments Inc., which adds about $18 to the BoM, according to UBM TechInsights. In comparison, Apple's iPad 2 uses Apple's proprietary A5 processor, which adds about $26 to the BoM, according to UBM TechInsights.
The Kindle Fire was released in the U.S. Monday (Nov. 14). It costs $199 when ordered directly through Amazon. Some analysts have initially suggested that the BoM on the Kindle Fire is much higher and that Amazon is selling them at a loss.
The 32-GB iPad 2 with 3G sells for $729 directly from Apple. A Wi-Fi only version of the iPad 2 with 16-GB of NAND sells for $499.
The current BoM cost for an 32-GB iPad 2 with 3G is about $276, according to UBM TechInsights.
Source: UBM TechInsights (click on image to enlarge).
Despite a wave of Android-based media tablets this year, iPad remains far and away the dominant product in the category. According to market research firm IHS iSuppli, iPads will account for about 74 percent of tablets shipped this year. Some analysts believe that Kindle Fire, with its low price tag and Amazon-backed ecosystem of media and apps, will pose the first real threat to iPad's stranglehold on the tablet market.
Among other the major BoM cost differences, the Kindle Fire has a 7-inch display with 1024 x 600 resolution that carries an estimated BoM cost of $35, while the iPad 2 boasts a 9.7-inch display with 1024 x 768 resolution that carries a $54 BoM cost, according to the preliminary analysis.
The 32-GB iPad 2 carries about $34 worth of NAND flash memory, while the Kindle Fire has only 8 GB of NAND at a BoM cost of about $8, according to the preliminary analysis done by UBM TechInsights.
Kindle Fire's battery is capable of 4,400 milliamp hours (mAh), is rated for about 7.5 hours of use, and carries a BoM cost of $12, while iPad 2's battery has a capacity of about 6,600 mAh, rated for about 10 hours of use, and adds $23 to the BoM, according to the preliminary analysis.
Research in Motion Inc.'s Blackberry PlayBook currently has a BoM cost of about $169, according to UBM TechInsights.
UBM TechInsights previously estimated that the BoM on Kindle Fire was about $150 before the device was being shipped. Some analysts have given significantly higher preliminary estimates on the device's BoM.
UBM TechInsights is owned by UBM plc, the same company that publishes EE Times. UBM TechInsights is conducting a full teardown of the Kindle Fire and photos and analysis from the teardown are expected to be posted on EE Times Wednesday.
Source: UBM TechInsights (click on image to enlarge).
The Kindle Fire processor is the OMAP 4430 from Texas Instruments Inc., which adds about $18 to the BoM, according to UBM TechInsights. In comparison, Apple's iPad 2 uses Apple's proprietary A5 processor, which adds about $26 to the BoM, according to UBM TechInsights.
The Kindle Fire was released in the U.S. Monday (Nov. 14). It costs $199 when ordered directly through Amazon. Some analysts have initially suggested that the BoM on the Kindle Fire is much higher and that Amazon is selling them at a loss.
The 32-GB iPad 2 with 3G sells for $729 directly from Apple. A Wi-Fi only version of the iPad 2 with 16-GB of NAND sells for $499.
The current BoM cost for an 32-GB iPad 2 with 3G is about $276, according to UBM TechInsights.
Source: UBM TechInsights (click on image to enlarge).
Despite a wave of Android-based media tablets this year, iPad remains far and away the dominant product in the category. According to market research firm IHS iSuppli, iPads will account for about 74 percent of tablets shipped this year. Some analysts believe that Kindle Fire, with its low price tag and Amazon-backed ecosystem of media and apps, will pose the first real threat to iPad's stranglehold on the tablet market.
Among other the major BoM cost differences, the Kindle Fire has a 7-inch display with 1024 x 600 resolution that carries an estimated BoM cost of $35, while the iPad 2 boasts a 9.7-inch display with 1024 x 768 resolution that carries a $54 BoM cost, according to the preliminary analysis. The 32-GB iPad 2 carries about $34 worth of NAND flash memory, while the Kindle Fire has only 8 GB of NAND at a BoM cost of about $8, according to the preliminary analysis done by UBM TechInsights.
Kindle Fire's battery is capable of 4,400 milliamp hours (mAh), is rated for about 7.5 hours of use, and carries a BoM cost of $12, while iPad 2's battery has a capacity of about 6,600 mAh, rated for about 10 hours of use, and adds $23 to the BoM, according to the preliminary analysis.
Research in Motion Inc.'s Blackberry PlayBook currently has a BoM cost of about $169, according to UBM TechInsights.
UBM TechInsights previously estimated that the BoM on Kindle Fire was about $150 before the device was being shipped. Some analysts have given significantly higher preliminary estimates on the device's BoM.
UBM TechInsights is owned by UBM plc, the same company that publishes EE Times. UBM TechInsights is conducting a full teardown of the Kindle Fire and photos and analysis from the teardown are expected to be posted on EE Times Wednesday.
Source: UBM TechInsights (click on image to enlarge).
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p_g
11/16/2011 7:06 PM EST
Amazon need to go big on volume to really gain on benefit from this. But certainly they have landed them is very competitive position by compromising the non-key features.
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goafrit
11/16/2011 7:31 PM EST
I still think Amazon is making a big mistake. This can undue this company stability.
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C VanDorne
11/17/2011 10:05 AM EST
Any product introduction is a risk. Look folks, the iPAD is big. Some people don't like that. If this device is on par, or even "close enough", in performance and availability of apps then Amazon will pick-up market share as the "right-sized" iPAD. Good luck to them.
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Frank Eory
11/19/2011 5:55 PM EST
I too thought the iPad introduction was a big risk. Like many, I thought, "it's just a big iPod Touch," and I had been an iPod Touch owner for quite awhile before the iPad came out. But after getting an iPad, I quickly realized that the usage model is so much more than an iPod Touch.
We have also been a Kindle family for several years, although it's my wife's and I only get occasional usage of it.
I think the Kindle Fire will be an enormous hit for Amazon, and I look forward to future posts here either validating that prediction or telling me what an idiot I was.
Kudos to companies like Apple for taking the gamble that the iPad would be perceived as so much more than a big screen iPod Touch, and to companies
Iike Amazon for taking the gamble that the Kindle Fire would be perceived as so much more than another Kindle or another Android tablet.
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DestroCom
11/17/2011 11:41 AM EST
How can the Kindle Fire in any way "undue this company stability'? Amazon had pre-sold close to 3,000,000 units prior to launch and they are expected to sell close to 5 million in two months. That's more than the iPad!
If anything the Kindle Fire is already a massive success, already making much more of a dent than Motorola, Samsung, or RIM have made with their tablets.
Not to mention that Amazon has one advantage Apple doesn't. Content. Loads of content. The Kindle Fire was a brilliant decision by Amazon's honchos.
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chanj
11/17/2011 1:59 PM EST
The success of both iPad is not solely because of the company - Apple. Nor is it because of Jobs' reputation. I believe it is a combined effort of company, Jobs' reputation and the deliverable contents - the apps, the apps store. Amazon sees the opportunities. Kindle Fire may likely capture a piece of iPad market because of the contents available. There may likely be market for people who only want to read book/ magazine and watch videos. Who knows how the ballpark being segmented? Only the market can tell. :)
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agk
11/19/2011 7:58 AM EST
A good BOM comparision of the display,memory and the battery with their price and performance.
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Nebraska Engineer
11/19/2011 9:25 AM EST
My wife pre-ordered a Kindle Fire for the promo price of $189 from Amazon to accompany her lifetime 3G enabled e-paper model. She loves both. The Kindles are only a conduit Amazon uses for continued sales. Amazon offers "Amazon Prime", a bundled service offering free shipping for products as well as free TV & movie downloads from Amazon. At $79/year we will pay for the entire BOM again in less than 2 years. Yes, Amazon has some costs associated with their Prime service but Prime offers Amazon an immediate cash flow buffer on top of the small margin of the Kindle Fire. My family is probably not a typical user base of technology. We hold on to things much longer than market obsolesce would predict. Over a 5-year period using Amazon Prime with the Fire, the BOM will have been $143 at time of purchase and total revenue will be $584. That is a 4:1 revenue:BOM ratio. Not bad after all. Movies, books, etc. are essentially pay-per-view for those not purchasing Prime.
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t.alex
11/19/2011 9:32 PM EST
Interesting. I guess if the business model is successful, the price will be dropped to below 100 dollars in 2 years.
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elctrnx_lyf
11/20/2011 1:29 AM EST
But the BOM cost that Apple spend will definitely be much less because of the huge volumes. SO at the end apple will actually charge more premium even with a less BOM.
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FillG
11/23/2011 4:06 PM EST
I for one, put the Kindle Fire on my Christmas wish list. I played with it for about 40 minutes at Best Buy and found it quite likeable. I have been holding off buying a tablet in hopes that someone would get wise and put a cell phone with bluetooth into the tablet, but have lost patience. So when Kindle came in at $200, I figured my wife and kids could come afford it (if they don't, I probably will).
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