One of the chief complaints consumers have about Amazon’s Kindle 2 e-reader is the price: $359. That’s beyond the reach of many people who’d like to try a Kindle.
However, a new “teardown” analysis from the market intelligence firm iSuppli suggests that there may be considerable room for that high price to drop. PC World reports that according to iSuppli, the Kindle 2 costs $185.49 to build, which is $173.51 less than its retail price.
Even taking labor and distribution into account, if iSuppli’s estimate is correct, that’s one heck of a margin.
I don’t blame Amazon for making a profit. But as more e-readers hit the market over the next year (from Plastic Logic and elsewhere), it would make sense for Amazon to drop the Kindle price — maybe even considerably. And as this and other e-readers become less expensive, it might make even more sense for news organizations to find ways to help lower the price even further and really grow this market.
For instance, news orgs could make volume purchases of e-readers, or become a local distribution partner or partner with local retailers for discounts. If e-readers get really affordable, this could become a promising new venue for news and other types of content and information services.
