Microsoft’s Surface RT more profitable than competition
TEARDOWN. A teardown analysis of the Surface RT reveals higher potential profits than the competition.
MANILA, Philippines - Market research website IHS iSuppli has announced the results of a hardware and manufacturing teardown for Microsoft’s Surface RT tablet.
The verdict points to the Surface RT as “more profitable, on a percentage basis, than even the lucrative iPad based on current retail pricing.”
Additional information also points to it winning out in profitability over the Kindle Fire HD
The teardown analysis notes a US$271 hardware price coupled with a US$13 manufacturing cost for a US$284 total. At the US$599 price point, the Surface RT makes more profit (US$315) on a percentage basis, compared to the low-end iPad.
Even without the touch cover as part of the purchase, the now-US$499 Surface RT will still make more profit than the low-end iPad in terms of percentages and on a per-unit basis.
There is a teardown analysis for the iPad Mini as well. In the iPad Mini teardown, the cost of hardware and manufacturing is US$198, while the selling price for the least expensive iPad mini is US$329, leaving a profit of US$131.
The Kindle Fire HD, which has a combined component cost of US$165, is sold for US$199. The Kindle Fire, on the other hand, is sold nearly at cost or at a loss, with digital sales driving the profit for the device. - Rappler.com
