Business
Shock horror! Amazon makes profit on Kindle 2 sales!
An iSuppli teardown estimates that Amazon's $359 Kindle 2 is actually made up of parts that add up to $185.
![adrian-kingsley-hughes](https://www.zdnet.com/a/img/resize/6f9ac99abaa541291e393a8b765bdffb2fa11559/2022/08/05/11c625de-cb18-4e3f-8614-5010553831f2/adrian-kingsley-hughes.jpg?auto=webp&fit=crop&frame=1&height=192&width=192)
An iSuppli teardown estimates that Amazon's $359 Kindle 2 is actually made up of parts that add up to $185.
![22-04-2009-14-14-41.jpg](https://www.zdnet.com/a/img/2014/10/04/92765e33-4b71-11e4-b6a0-d4ae52e95e57/22-04-2009-14-14-41.jpg)
The problem with these teardown studies is that they don't take into account R&D, marketing, distribution, warranty and so on. When you take that into account, that $174 "profit" will be shaved down considerably.
There will be a profit on each Kindle 2 sale that Amazon makes, but it won't be anywhere near the $174 suggested by the teardown.