Preliminary teardown suggests Surface RT is more profitable than iPad

Shawn Knight

Posts: 12,186   +120
Staff member
A new report from IHS iSuppli suggests that Microsoft's Surface RT tablet is more profitable than Apple's iPad. The company's preliminary teardown report on a 32GB Surface with the optional black touch cover reveals a bill of materials (BOM) of...

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Posts: 3,211   +1,455
Am I completely missing the point of these 'how much profit per gadget' articles? MS and Apple have zero profit until they sell enough of them to recoup requirement/design/testing costs. Is the cost for building a tablet so low that we can just forget about fixed costs and only look at the variable ones?


I'm sure it does play a part but its not hard to build a tablet with the right resources which microsoft definitely has the right hardware technology programmers engineers and new stuff in research development really I'm surprised they haven't done better surely they could build the most of it themselves from scratch and they already have all the software, apple are worried because they cant compete price wise but maybe google can get on the scene and start a price war for christmas new year sales :)

Greg S

Posts: 1,607   +442
The advantage MS has over apple is that millions of people want to buy windows already. There are not too many people getting the ipad because it has iOS. They want the apps and the ease of use, but could really care less what OS it's running as long as it's easy and has apps.


The key point here is that Microsoft ripping off its customers substantially more than Apple.

So much for the Apple Tax.


Posts: 981   +339
The key point here is that Microsoft ripping off its customers substantially more than Apple.

So much for the Apple Tax.
They did it this way to make sure that their hardware partners had room to make cheaper Windows 8 tablets and still make a profit. Basically the Surface is the bar, the quality, the specs and the prices have set the bar for Windows 8 RT tablets and the partners need room to breath so MS gave them some. It's not the same as Apple that has no partners at all and takes in all the profits from their hardware.


Posts: 2,854   +197
Just holding out for Windows Surface Pro as the Windows Surface RT seems more like what Android Tablets use like with Tegra3 but with 2GB RAM. 2GB of RAM can quickly fill-up. These tablets need 4GB to 8GB of RAM to really do anything serious on it. 16GB would be more usable. Just 2GB just seems so limited and the price you have to pay for the RT for 2GB is overkill.

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