Microsoft, Apple tablets have most profit margins
LOS ANGELES (AP) - Microsoft and Apple are garnering the highest profit margins for their tablets, followed by Google and then Amazon, according to research firm IHS.
Microsoft's first self-made tablet, the Surface, costs about US$267 (S$327) in parts and labour when excluding its optional keyboard cover. It went on sale Oct 26 priced at US$499, for a profit margin of around 46 per cent. Surface comes with a 10.6-inch screen measured diagonally, and can access the Internet only through Wi-Fi. The price is for its base model with 32 gigabytes of memory.
With a similar configuration, the Surface bakes in slightly more profit for Microsoft than Apple did when it released its third-generation iPad in March.
Apple's third-generation Wi-Fi-only iPad with 32GB of memory and a 9.7-inch screen cost an estimated US$333 and retailed for US$599, for a 44 per cent profit margin. The 16GB base model cost US$316 and was priced at US$499, for a profit margin of 37 per cent.