Originally Posted by
pseudoswede
The problem is that HP (nor any technology company, really) is prepared to sell their items for a loss to gain market share and hope apps/accessories sales bring the whole production line into the black. It will be interesting to see how much Amazon prices their new tablet at--although I instantly wrote it off since it's only a 7" screen.
IIRC, you could get the pre-fire sale 16gb for $400, which is only $100 above HP's manufacturing costs (and does not include marketing and R&D). There is very little margin below that $400 price point.
All those cost estimates are rather stupid, don't you think they pay significantly less in scale of a million orders?
Just because isuppli says it cost $320 for a tablet, or any other number, doesn't make it so.
I am not being unrealistic and saying it cost them $189 to make the 16GB model, but to say it cost even $299 is not realistic either, probably more in the area of $230-60 in volume. So yes they would still be losing money, the total cost they give doesn't include R&D, or marketing of course.