Fresh on the heels of an iPad mini teardown that revealed £118 worth of components, IHS has pegged the Kindle Fire HD bill of materials at £103-odd. That means that only about £15′s worth of hardware separates devices with £110 price tag differential. Yeesh.
It was no surprise that the Kindle Fire HD was at best a break-even proposition for Bezos & Co., but that £160 price tag looks even more unhinged when you consider all the research and development and marketing costs that aren’t counted in that £103 figure. Consider that there’s a £151 gap between Apple’s iPad mini bill of materials and its sticker price. That distance, for Amazon, is just £57.
Microsoft, meanwhile, rings up a £170 components bill for every £400 32GB Microsoft Surface it pumps out. That gap makes sense especially given Microsoft’s lack of a wildly profitable content business, which is how Amazon justifies its kamikaze Kindle pricing. Microsoft’s advantage is even more pronounced when you factor in its Touch Cover, which retails for £100 when bought separately, and contains about £10 worth of parts. [AllThingsD]