Surface Tablet cost

Even as an earlier tear down of the Surface RT Tablet of Microsoft by ifixit.com was mainly focused on how the device can be repaired, a recent article has revealed the estimated cost of manufacturing the initial entry of Microsoft into the tablet market, according to from AllThingsD.com.

The report indicated that the 32GB model cost around $271 to produce, basing on the information provided by the research company, IHS. The cost already includes the ARM-based Tegra 3 processor of NVIDIA as well as the components sourced from Samsung. Half of the entire cost of producing the device, or $137, is for the components supplied by the South Korean company. Samsung supplies the display, battery and memory of the device. The price tag of this particular model of the device is $449.

Although, the Touch Cover of the device is not included in the cost based on the tear down of the device, IHS indicated that the Touch Cover will only cost around $16 to produce. This is much lower than the $120 price tag when it is purchased as an add-on accessory, which means that Microsoft is raking in a huge profit with the Touch Cover. On the other hand, the report did not reveal the cost of producing the Type Cover accessory of the device.

Aside from the tear down of the Surface RT tablet, the report also revealed the cost of producing the Amazon Kindle Fire HD, which is at $165. The Amazon device has a price tag of $199.

Source & Iamge: AllThingsD.com