Microsoft Generates 46 Percent Profit on Surface Tablet

A teardown of Microsoft's Surface tablet has revealed that the software giant makes 46 percent profit on the device.

IHS found that Apple makes $141 per unit for its just-released iPad Mini, while Amazon makes a 15 percent profit on each Kindle Fire HD sold, which is the equivalent to about $30.

The world's largest online retailer is known to sell its Kindle e-readers and original Kindle Fire devices without making a profit as it's sold at cost price, with the company hoping to recoup its money through users purchasing books and apps on the tablet.

Microsoft, meanwhile, is making a significant amount of profit when considering that Surface is the firm's foray into the tablet market, as well as its introduction into the hardware market. The Redmond-based company makes $228 for each unit sold.

Surface retails for $499 for its base unit, while the basic 16GB Wi-Fi-only iPad Mini variant sells for $329. Amazon sells the Kindle Fire HD tablet for $199.

 

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  • krowbar
    Zak, just stop.
    24
  • freggo
    The numbers are distorted of course as they do not take into account that some of the 'profit' has to be used to pay back the R&D that went into the devices.
    But than again, some 'reporters' are not too good with numbers or accounting matters.
    22
  • deftonian
    They shouldn't compare the Surface to the iPad mini, they're in two different size / productivity leagues. They should compare the profit margin of the Surface to the full size iPad. I hate when reporters compare products that aren't in the same tier.
    22
  • Other Comments
  • freggo
    The numbers are distorted of course as they do not take into account that some of the 'profit' has to be used to pay back the R&D that went into the devices.
    But than again, some 'reporters' are not too good with numbers or accounting matters.
    22
  • bak0n
    That will give them a grand total of 0 dollars profit from me. Next.
    -10
  • deftonian
    They shouldn't compare the Surface to the iPad mini, they're in two different size / productivity leagues. They should compare the profit margin of the Surface to the full size iPad. I hate when reporters compare products that aren't in the same tier.
    22