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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Amazon Kindle materials half device's retail price: iSuppli Wed Apr 22, 2009 12:41pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] SAN FRANCISCO (Reuters) - Amazon's Kindle 2 electronic reader retails for $359 but costs about half that amount to build, research group iSuppli Corp said on Wednesday. In a dissection of the much talked-about device -- whose profitability and sales Amazon has never disclosed -- iSuppli found that the direct materials used in the Kindle cost $176.83. Adding the costs of manufacturing and the battery, the amount rises to $185.49, the group found. That sum does not include intellectual property costs, royalties and licensing fees and costs from software development, shipping and marketing. Amazon did not immediately respond to a request for comment. In February, the world's largest online retailer launched the second version of its Kindle, which allows users to read books, newspapers and blogs wirelessly on a device weighing less than a typical paperback. The new digital book reader includes more storage and a slimmer silhouette than the first version, although the retail price did not change. ISuppli performed what it called a "virtual teardown," using insights from its staff to develop estimates of the Kindle's content and cost structure. The most expensive component of the Kindle is its display module from E Ink Corp, followed by its wireless broadband module from Novatel Wireless Inc, iSuppli said. (Reporting by Alexandria Sage; Editing by Tim Dobbyn) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Microsoft judge says oversight process at "much better place" Also On Reuters Commentary: Killer robots and a revolution in warfare In app store war, BlackBerry and Google hold their own Blog: Unanswered questions after Freddie CFO suicide More Technology News In app store war, BlackBerry, Google hold own Get SMS-ing, U.S. tech execs urge Web-starved Iraq AT&T profit boosted by iPhone, video, Internet Microsoft judge says oversight process at "much better place" Lockheed says F-35 classified data not breached More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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