A teardown analysis by market research firm iSuppli estimates the cost to build Amazon’s Kindle 2 at $185.49, or about 52% of its retail price of $359:
The research firm believes the most costly component in the Kindle 2 is its display. Designed by the privately held E Ink, based in Cambridge, Mass., the display was integrated into a final module by Taiwan’s Prime View International. ISuppli analyst Andrew Rassweiler, who supervised iSuppli’s teardown, pegged the cost of the display at $60, or about 42% of the cost of materials.