Freescale's Cheap Chip Could Mean Sub-$99 E-Readers

eldavojohn writes "Last week, Freescale Semiconductor announced their i.MX508 chip and a few days ago released a rather bland and boring announcement that it's available. But there was at least one interesting line from that press release, 'The i.MX508 applications processor is expected to be priced at less than $10 (USD) in quantities greater than 250K units.' Yes, less than ten dollars. This sparked a wave of articles detailing how this new chip will allow the sub-$99 e-reader to emerge and according to market research, consumers are thirsty for something much more affordable than the Kindle."

But what about the cost of e-ink?

[Anonymous Coward]

I seriously doubt it's the processor that's causing the Kindle to be so high priced. It's most likely the costs of using the e-ink screens.

Re:But what about the cost of e-ink?

[godrik]

I also think that the display is the main cost. But the network interface are not that cheap as well. And I think the main cost of the kindle may be the 3G internet access.

Re:But what about the cost of e-ink?

[fuzzyfuzzyfungus]

The cellular hardware probably doesn't help either(for that matter, it isn't exactly clear, at least not from publicly available figures, how much of the cost of the bandwidth is baked into the cost of ebooks and how much is baked into the cost of the device). You can already get cheaper(albeit generally content-storeless) e-ink devices without that hardware.

That said, BoM savings are a good thing no matter where they occur. If they felt the need to trumpet the price in the press release, the new chip is presumably cheaper, or embeds what were previously distinct peripheral chips, or both.

Re:Cheaper than the Kindle, and OPEN.

[Lunix Nutcase]

Except most consumers don't care about something being "open".

Re:Cheaper than the Kindle, and OPEN.

[serialband]

Most consumers just want ease of use. If it requires too many steps, then it's not going to sell well.

Re:But what about the cost of e-ink?

[h4rr4r]

For 90% of users I bet the cellular hardware could just be removed. Just have it load books via usb mass storage or via an itunes like app.

Re:But what about the cost of e-ink?

[Anonymous Coward]

So that already puts us at 70 bucks for *just* the display and chip (assuming these number are correct). Throw in the cost of the other parts and that means the LOWEST price we'd see something made with these parts on the market is around $100, but count on $130-150 for a reasonable profit for both the manufacturer and the retailer. That's not a whole lot lower than the current price of a 5" reader on special somewhere.

Re:Going down.

[h4rr4r]

$99 netbooks exist. Google for chinese mips based netbooks.

Re:But what about the cost of e-ink?

[Kell Bengal]

See, that's what the sensible person would think. But note, if you loaded books via USB, how could they tether you to their expensive online bookstore? How would they upsell to you? Gasp - you might even buy PDFs from a competitor!

Re:Why would I want one again?

[c++0xFF]

For pleasure-reading, I completely agree.

But I want to go to classes with my e-reader and some paper, instead of my body weight in textbooks (which I may or may not need that day). I don't care about "enhanced content" (who actually uses the CD that comes with hardcover textbooks?) .. just give me a note-taking application, a good calculator and possibly access to my email.

Re:Really wont change the price

[gad_zuki!]

>by sacrificing things like onboard wireless (which adds ~$40 to the cost of the Kindle).

Its not wifi chips that are expensive its the EVDO and the deal Amazon has with Sprint that's expensive. I dont need a EVDO ebook reader. Wifi is good enough. Just give me an offline option if I cant get it on wifi someplace (copy file to USB drive and insert it into ebook reader). Really, there's a huge hole in the market for sub $150 dollar ebook readers. Its probably doable with a smaller eink screen and lack of bell and whistles. The Sony pocket edition reader is pretty close.

Re:Why would I want one again?

[Abcd1234]

Plus, they're great for reading in bed. Anyone who's tried to read lying on their side knows how much of an *enormous* pain in the ass regular paper books are. It's just not doable. But an ereader is perfectly comfortable.

Re:Absolutely

[armyofone]

Bookshelves full of books look nicer than YAGLAOTKC, (yet another gizmo laying around on the kitchen counter)... :-p

Re:But what about the cost of e-ink?

[electrosoccertux]

Nah, they pay for the recurring 3G cost through ebook sales.

Re:Cheaper than the Kindle, and OPEN.

[thesandtiger]

Obviously, you are wrong. I mean, that's why the iPod failed, why iTunes hasn't sold more than a handful of songs, and why Linux has 95% of the desktop marketshare.

It's like you live in an alternate reality or something!

Re:Really wont change the price

[indiechild]

They could also burn money and give stuff away for free.

Loss leaders are not generally a good idea if you want to make progress in business.

I think this race to the bottom with prices is really foolish. It forces the gadget maker to cut corners and quality and do all sorts of silly stuff. Competing on rock bottom prices is for suckers.