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November 6, 2012

Who's Raking in the Highest Profit Margins from Tablets: Microsoft vs Google

Microsoft Surface has higher margin than Apple iPad: IHS - The Times of India: Microsoft and Apple are garnering the highest profit margins for their tablets, followed by Google and then Amazon, according to research firm IHS.

Crushing Competition the Apple Way :2012 Tablet Market by IDC shows  iPhone  leading the charts with Samsung,Asus,Lenevo

2012 Tablet Marketshare: Commanding 68% of the market,Apple rules the charts with Samsung managing 9% which is a difference of  58% point difference between the no 1 and the number second with a huge margin


The above graph by Asymco  shows how As the following graph shows Apple gross margins and its operating margins have both been on a consistent upward slope since early 2006.


How much does it costs the Tech firms  to manufacture a Tablet :Does the higher price of iPad makes more profit for Apple. Well seems that is not true as Microsoft's first self-made tablet, the Surface, costs about $267 in parts and labour when excluding its optional keyboard cover. It went on sale on October 26 priced at $499, for a profit margin of around 46 percent. Surface comes with a 10.6-inch (26.9-centimeter) 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 Microsoft Surface Tablet  makes more  more profit han 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 (24.6-centimeter) screen cost an estimated $333 and retailed for $599, for a 44%  profit margin. The 16GB base model cost $316 and was priced at $499, for a profit margin of 37 percent.