Why is nikon d3100 so cheap?

I'm planning to get 1 but it is very cheap

Is that a problem?
it was $700
but they dropped the price to $600

Cz its not that much of a upgrade from nikon d3000 and now nikon d5100 is on the market.d3100 lacks many basic feature like bracketing and custom menu option.

To get you hooked into photography. Nikon users are the most notorious in "upgrading" their cameras. Upgrade meaning replace.

The D3100 is one of Nikon's 'crippled' entry level cameras, limited functions and you have to buy the more expensive AF-S lens if you want auto focus, even more if you want image stabilisation as well.
For around the same price you can buy a Pentax Kr, none of the above limitations and you get a more up to date sensor with much better low light, dynamic range performance and better build quality. The Kr is probably the reason why Nikon had to reduce the price of their entry level cameras to the same level, but your still buying a 'crippled' camera.
Check out the top 10 DSLR's here the Kr came number 3 after the Pentax K5 and the (full frame) Nikon D3s.
http://www.ephotozine.com/article/top-10-best-dslrs-reviewed-by-ephotozine-15933

Because its cheaply made I guess, due to plastic body and other things like that. Don't let it put you off though, it is still a good dslr for a beginner

I have a Nikon D3100 and i love it what Nikon did was they had those really professional cameras and made the Nikon D3000, D3100, D5000 and even the Nikon D90 those are all nice cameras and they are great if you think it will be go with a higher end camera like the D90. Hope i helped.