Microsoft Could Be Making Larger Per-Surface Profits Than Apple Gets From The iPad

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Ever since Microsoft announced its Surface tablets, it’s been talking about competitive pricing; before we had official word on the Surface RT and Surface Pro launch prices, we knew the RT would be priced competitively with its tablet brethren, and the Pro would see its own price tag fit in nicely among ultrabook offerings. We’ve since seen those kind of figures confirmed, but a new hardware tear-down suggests that not only has Microsoft matched its competition’s sticker prices, but their mark-ups, as well.

Fortune estimates the cost of parts going in to the 32GB Surface RT as adding up to roughly $270. That figure’s a little lower than what Apple appears to be spending to make each 32GB iPad, but not by much. When you look at what each charges for its gear, Microsoft’s cost savings might mean that the company is turning a higher profit on each Surface RT it sells than Apple sees from each iPad.

Maybe a high sticker price is important for Microsoft to establish that the Surface should be seen as a serious contender, but we can’t help but think that shaving that estimated $315 profit margin down a little might just give Surface RT sales the kick in the pants they need.

Source: Fortune
Via: BGR

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bitsRead more about Stephen Schenck!