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.

_{Contact Us for News Tips, Corrections and Feedback}