Microsoft Surface Tablet More Profitable Than iPad [REPORT]

Tablet manufacturers have tried to compete with the iPad by pricing their devices at a lower rate, even if it meant sacrificing profit margins. But a new report shows Microsoft is taking a very different approach with its new Surface RT tablet.

A preliminary tear-down estimate by IHS shows the Surface RT with optional Touch Cover has a bill of materials (BOM) of $271. That price jumps to $284 after the $13 manufacturing cost is added. Thats for a $599 model including Touch Cover.

Back in March, IHS estimated that a new, 4G-capable iPad with Retina display and 16GB had a BOM of $325. Apple just released a newer version of the iPad with a faster processor and other new parts. In a…
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