Microsoft Surface RT more profitable than iPad

Microsoft Surface RT more profitable than iPad

SAN FRANCISCO—Microsoft Corp.'s Surface RT tablet generates a higher profit per unit than a comparable version of Apple Inc.'s wildly successful iPad, according to a teardown analysis performed by IHS iSuppli.

According to the IHS Teardown Analysis Service, the Surface RT model with a minimum of 32 gigabytes of NAND flash memory and an optional black Touch Cover carries a bill of materials (BOM) of $271.00. Adding in $13 in manufacturing expenses, the total cost to make each Surface rises to $284, according to IHS.

Microsoft retails the 32-gbyte version of the Surface with the Touch Cover for $599, generating a profit of $315 per unit, according to the IHS analysis. Even at a price of $499 without the Touch Cover, Microsoft will generate a profit margin that is greater than the low-end iPad in both percentage terms and on a per-unit basis, according IHS.

The IHS teardown of the Surface RT found components made by chip suppliers including Samsung Electronics Co. Ltd., Freescale Semiconductor Inc., Atmel Corp., Nvidia Corp. and others, IHS said.



TAG:Surface RT Microsoft Apple Ipad IHS Teardown