iSupply has made a teardown analysis of the Kindle 2, which sells for 360$. iSupply says it only costs 185.5$ to make.

Kindle 2Kindle 2

The most expansive part is the E Ink display - estimated at 60$ (41.5% of the total material bill). It's a 6" diagonal screen, 600 x 800 pixels at 167 ppi, 16-level gray scale.

The second most expensive part is the wireless module from Novatel (39.5$).

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