Surface teardown reveals real cost

A teardown of Microsoft’s Surface tablet has revealed the cost of creating the new device.

According to iSuppli, the Bill of Materials (BOM) cost for the 32GB Surface tablet is approximated to $271 (R2,368), along with a $13 (R114) manufacturing cost.

This makes the total cost of manufacturing the tablet $284 (R2,482).

Microsoft’s retail price was set at $499 (R4,360) for the 32GB version without a Black Touch Cover; $599 (R5,237) for the 32GB version with a Black Touch Cover; and $699 (R6,107) R for the 64GB version with a Black Touch Cover.

This leaves a significant profit margin for Microsoft – more so than what Apple makes with the iPad Mini.

Below is the cost of the components in the Surface RT (32GB) tablet:

Surface cost table
Bill of Materials and manufacturing costs for the Surface RT (32GB)
Source: iSuppli 

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Surface teardown reveals real cost