The 6" E Ink pearl display on the Kindle 2011 costs $30.5iSupply performed a teardown analysis on the Kindle 2011, and according to them the 6" E Ink Pearl display costs $30.5. This is the most expensive component on the Kindle - which costs $84 on the whole (BOM and assembly). This means that Amazon is actually losing $5 on each ad-supported device sold - which cost $79
via E-Reader-Info
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Losing money
They're not losing money because they show ads, $109 without ads