It Costs Microsoft Just $83 More To Make A Surface Than It Costs Apple To Make An iPad Mini

parislemon:

While we’re on the topic of teardowns, this is also interesting from Arik Hesseldahl:

With a base price of $499 for a 32 gigabyte Surface without the Touch Cover accessory, IHS estimates that the cost of components used to build it amount to $271 for a starter 32GB model, without the cover.

Simple math: if these estimates are correct, the base-level Surface costs only $83 more to make than the base-level iPad mini. Still think $329 isn’t a good deal?

Put it this way: Microsoft is selling a product that costs $83 more to make for $170 more. In pure economic terms, it sure looks like the iPad mini is a great deal.

As for the Kindle Fire HD:

Like the old one, the new Kindle Fire HD sells for a starting price of $199, and carries a combined cost of components of $165, according to IHS estimates.

So the Kindle Fire is cheaper to build than the iPad mini — no surprise there, despite the “HD” screen. But Amazon is selling it at a tiny profit, so it’s technically the best “deal”.

It Costs Microsoft Just $83 More To Make A Surface Than It Costs Apple To Make An iPad Mini

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