Microsoft’s $499 Surface Tablet Costs Only $271 to Make

Microsoft seems to turn its first tablet ever into a very profitable business

  The Surface costs only $271 to make
Microsoft’s recently launched Surface tablet proves to be quite a profitable business for the Redmond-based technology company if we consider the production cost – final price ratio.

Microsoft’s recently launched Surface tablet proves to be quite a profitable business for the Redmond-based technology company if we consider the production cost – final price ratio.

Citing information provided by research firm HIS, AllThingsD reports that Microsoft spends only $271 (€211) to build the cheapest Surface, while the selling price for this particular version is $499 (€380).

The Surface is being offered in three different versions, with the entry level model coming with 32 GB of storage space, but no Touch Cover.

As you probably know by now, Samsung is the manufacturer of several pieces of hardware installed on the Surface, including the battery, memory and display.

According to the same source, the production cost of all Samsung components is approximately $137 (€106).

Microsoft’s revolutionary Touch Cover however is extraordinarily cheap, although the software giant sells it for $120 (€93.5) in case your Surface version doesn’t have one. It seems like this add-on costs only $16 (€12.5) to make, with no information available on the Type Cover.

Microsoft’s Surface tablet is available in three different versions, two with 32 GB of storage space and without a Black Touch Cover and another one with 64 GB and the magic accessory.

If you purchase it separately, the keyboard comes with a price of $120 (€93.5), while the Surface Type Cover is a bit more expensive and costs $129 (€99).

The cheapest version was sold out in less than 24 hours after Microsoft officially launched the preorder program, while the two more expensive packages did fared the same in approximately one week.

We still don’t know, however, what the most expensive piece of hardware bundled into the Surface is and Microsoft is yet to issue a comment on the matter, but we’ve contacted the company and we’ll get back to you as soon as we receive an answer.

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