Feeds

Surface more profitable than iPad

Microsoft's margins greater than Apple's

Internet Security Threat Report 2014

Microsoft's Windows RT-based Surface tablet - designed to compete with the full sized Apple iPad - has a larger profit margin than its rival, a teardown analysis has revealed.

The Surface, with its minimum 32GB of Flash storage and optional Touch Cover, has a bill of materials (BoM) that totals $271. Chuck in an additional $13 to cover manufacturing costs, and the whole thing costs $284 to make, market watcher iHS iSuppli has claimed.

Over $100 of the BoM is pumped into the Surface's 10.6in, 1366 x 768 touchscreen display, with memory priced at $34 and the device's Nvidi Tegra 3 processor a mere $21.50. Check out the full BoM table below.

Preliminary Bill of Materials for 32GB MS Surface

Source: IHS iSuppli

With a retail price of £479/$599, the Surface generates both hardware and manufacturing profits that are higher than the low-end iPad, in margin percentages at least. Microsoft could price the product at $499 and still stay ahead, iSuppli reckons.

Even without the optional Touch Cover unit - which costs Microsoft roughly $17 a pop - profit margins remain greater on a per-unit basis.

When stripping down a 16GB iPad 3, iSupply concluded it had a total BoM price of roughly $347.55.

The caveat in all this is, of course, that BoM figures don't take into account the cost of the core software and promoting the product.

Separately, teardown service iFixit.com concludes in its own Surface X-ray that the Redmond firm's fondleslabs are easier to repair. ®

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.