Comments on: IHS Teardown Finds Microsoft Surface Costs $271 And TouchCover Costs Just $16 To Build

By: Gavin Tom

Gavin Tom — Tue, 06 Nov 2012 06:58:00 +0000

lol you just made my day a little better. Your argument makes no sense, I see where you are going with it but again, No.

By: ryan

ryan — Mon, 05 Nov 2012 22:01:00 +0000

As others have said, there are many other costs involved besides just building the thing. Also, it is important that MS makes a reasonable profit from the thing and that its prices are in line with competitive devices.

If MS sold this thing for somewhere in the $300 range, it would completely undercut other partners making W8 hardware and that would be bad.

By: Agrippa

Agrippa — Mon, 05 Nov 2012 19:05:00 +0000

You know… except for the part where Microsoft says that’s not the case. Microsoft’s partners says that’s not the case, and everything you’ve just said is words words words without actually thinking.

I don’t think business and supply chain works the way you think it works. Might I suggest you google (or bing) to learn more. No rush. We’ll wait.

By: rjmlive

rjmlive — Mon, 05 Nov 2012 17:06:00 +0000

Packaging, testing, software.. I assume materials cost does not include shipping of the components to be assembled as well.

By: Mar

Mar — Mon, 05 Nov 2012 16:59:00 +0000

No your logic is flawed, the license fee has to be paid anway… even on their own Surface it includes the license fee. The simple fact is that the development of Windows has to be funded. The sales of the Surface would otherwise not fund the Windows development, hence the Windows department will lose money (since the Surface would be getting a “free” license according to you).

No matter how you look at it, the Windows RT license is included and will be incorporated in the price.

Simple economics.

By: yeah

yeah — Mon, 05 Nov 2012 16:29:00 +0000

iPhone costs less than 200$ to build and Apple sells it for 700$…
But Apple is Apple so that price is fair -.-’

By: Ryan Smith

Ryan Smith — Mon, 05 Nov 2012 15:51:00 +0000

Did you even think about what you typed?
Microsoft charging themselves for the Windows RT license fee?
It’s actually the exact opposite and why a lot of OEMs feel slighted by the Surface as they have to pay this fee, but Microsoft obviously does not as they have full control over the operating system and thus can just slap in Windows RT for no cost to them.

By: Mar

Mar — Mon, 05 Nov 2012 11:40:00 +0000

And don’t forget the rumoured 85$ Windows RT license fee, which the Surface dept. also has to pay to the Windows dept. Making the costs much closer to the parts costs. So except for the touch/type covers, the price of the tablet is very very fair. And like I said, the steep price on the covers is probably to subsidize the tablet.

By: Mar

Mar — Mon, 05 Nov 2012 11:32:00 +0000

No Labour, No marketing expenses, No transportation, No taks, No R&D… Those tear downs are a big FUD. For a company the scale of Microsoft with massive expenses and overhead. I say this is a fair price, and actually the tablet is getting ‘subsidized’ by the overpriced covers. Which kind of makes sense the choice is there to get the cheapest version, cheaper.

By: Ocelotty1

Ocelotty1 — Mon, 05 Nov 2012 11:21:00 +0000

labour costs, raw materials, factory profit margins, transportation costs which have skyrocketed for containers from Asia recently, reseller profit margins & labour costs, as well as the final end seller profits
None of which factors in the massive R&D costs and new factory infrastructure and equipment costs. Have I missed anything? Oh yes tax