The repair site iFixit has posted a set of dis-assembly photos for the new 7" KFHD. As we suspected, the Android tablet does have a battery, screen, and chips inside. Snark aside, I have to say that I am moderately impressed by some of the parts revealed in this teardown.
The KFHD has not 2 but 4 speakers, 2 on either side of the screen. That is a more expensive component than I expected to find in this tablet and it helps explain why the KFHD has better sound than most mobile devices.