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Microsoft Surface RT teardown reveals $271 worth of components

Posted: , by Nick T.

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Microsoft Surface RT teardown reveals $271 worth of components
We already know what kind of hardware makes the Windows RT Microsoft Surface tablet tick as the device has already been given the teardown treatment. This time, however, we are being given an estimate as to how much are all of these components actually cost. According to IHS, the most affordable Microsoft tablet, with 32GB of storage, is made out of $271 worth of parts. Costs for R&D, marketing and shipping are not being taken into account. And that is not bad considering that the Surface RT starts at $499.

About half of that, or $137, to be more specific, goes straight to Samsung as it supplies quite a few of the tablet's components. The Korean company is providing the memory chips, the battery, as well as the display for the Microsoft Surface RT. The device's processor, however – a quad-core Tegra 3 chip, is made by NVIDIA.

But that is not all: the guys also took a Microsoft Touch Cover apart only to find out that it is worth about $16. The accessory, which acts as a protective cover and a hardware keyboard of sorts, is actually priced at $120 online, or can be had for $100 if bought together with a 32GB Surface tablet. And that quite a profit margin for something that a fair amount of consumers are likely to purchase, be it intentionally or impulsively.

The Microsoft Surface tablet with Windows RT started shipping on October 26 and we already gave it a thorough review. Currently, the only models available online are the 32GB with bundled Touch Cover for $599 and the 64GB one for $699, which also comes with a Touch Cover included. The base $499 model is out of stock.

source: IHS via AllThingsD

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posted on 05 Nov 2012, 04:58 16

1. Astro551 (Posts: 46; Member since: 18 Dec 2011)

still not as bad as apple.

posted on 05 Nov 2012, 05:04 10

2. gothicheart (Posts: 83; Member since: 17 Oct 2012)

and unlike the fruit company, you get you money's worth...

posted on 05 Nov 2012, 05:31 2

3. Birds (Posts: 1171; Member since: 21 Nov 2011)

It costs apple 5$ to make a damn iPad and they turn around and sell it for a trillion times the amount.....Smart company....As long as their are people willing to break a wallet and a bank for Apple, then they will continue to overprice their tablets....just staying....

posted on 05 Nov 2012, 06:24 1

6. PhenomFaz (Posts: 1236; Member since: 26 Sep 2012)

now this is a quality tablet with production costs being $271!
Compared to the ipad which has production costs of not even $200 but sells their tablet at a 50% premium compared to the surface

posted on 05 Nov 2012, 06:44 3

7. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)

Wow Samsung is massively huge suppliers of semiconductors to Apple MS Nokia and others....

posted on 05 Nov 2012, 06:02 4

4. pikapowerize (banned) (Posts: 1869; Member since: 03 May 2012)

really considerable! i mean at least they dont get huge profit! unlike apple! heck iPad mini should only cost $250 for 16GB.... but heck.. its apple! they dont listen! they revolve on their own world! not considering that a lot of people cant eat!

"an apple a day will kill me and my pocket right away!"

sorry apple i love you but this is too much!

posted on 05 Nov 2012, 06:45 1

8. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)

True over-priced midrange products with High-End hardwares. No wonder

posted on 05 Nov 2012, 06:11 1

5. jove39 (Posts: 1976; Member since: 18 Oct 2011)

$16 cover for $100...that just plain bad! MS should understand that Nexus 10 is significant competitor now...apart from iPad!!!!

posted on 05 Nov 2012, 07:03

9. sarb009 (Posts: 316; Member since: 15 Jun 2011)

Ya thats plain looting selling a thing at 120 which costs them damn 16 or u throw 10 more even then its tooooo expenisve

posted on 05 Nov 2012, 07:50

10. blattlaus (Posts: 70; Member since: 12 Dec 2010)

Remember these numbers don't include RandD, marketing and logistics. I imagine that on something like the Touch/Type covers, developement costs were huge.

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