Report: Amazon’s Kindle 2 cost almost $186 to make

NEW YORK — A research firm estimates that Amazon.com’s latest Kindle e-reader costs almost $186 in parts and manufacturing.

This is about 52 percent of the $359 retail price for the Kindle 2.

Based on a breakdown of the device’s components, iSuppli estimates that the cost of all the parts to build the Kindle 2 totals nearly $177. Sixty dollars goes toward an E-Ink Corp. display and nearly $40 toward a module from Novatel Wireless Inc. to permit wireless downloads of books through Sprint Nextel Corp.’s data network.

ISuppli believes that, when including manufacturing and battery costs, the device costs $185.49 to build.

Amazon.com Inc. has been selling the Kindle 2 since February.