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Thursday 8 November 2012

Microsoft Surface RT Teardown Implies that Profits Are Huge; Devices Cost $284 to generate, Sells for $599!


It appears that Microsoft is making a substantial amount of money off the new Surface RT tablet, since they’re selling this starting at $599 and rendering it for about half the cost. The folks of IHS iSuppli are behind the details, showing us a invoice of materials of $271, including a $13 manufacturing cost. Which means that it costs $284 to generate the Surface RT having 32 GB NAND flash memory and then it gets sold for double that amount.
A recent teardown of the iPad Mini revealed so it costs $188 to make, bringing a $141 earnings per unit, so about 50 % compared to what Apple makes with the Surface RT tablet. There’s also one aspect to mention here: the price of the license for the software and OS on table, that are not included in the price of the study. IHS iSuppli found that the touchscreen takes the majority of the cost with $101 because the price paid for it then mechanical and electro kinetic parts, going for $35 in whole.

The memory (2GB DDR3L + 33 GB eMMc NAND Flash + DRAM) benefits $34, finally. Just for comparison sake, Apple makes much less with the iPad 3, with a price tag of $499 as well as a bill of materials involving $316. Is Microsoft receiving greedy? Or are they just preparing for a crazy price down the road, something like $399 inside early 2013?


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