iPad Vs Surface Tablet: When shopping for a tablet as a consumer, you are sure to have several “must haves” in mind, and Apple Inc. (NASDAQ:AAPL) is almost always in the conversation. From the screen size to the speed to the functionality and much more, the comparison process can go on for days.
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While true that the Apple iPad is king right now, as we recently reported, it is still interesting to compare the leader of the pack to the up and coming Surface tablet from Microsoft Corporation (NASDAQ:MSFT).
In a recent article on CNNMoney, it is suggested that Microsoft is taking a different approach to the market. The company is selling that Surface at a premium price.
An analysis by firm IHS iSuppli suggests that Microsoft’s — not Apple’s — device has higher margins. If things go well, Microsoft could capture some 9% of sales by 2016, Gartner Research estimates. That’s still far behind Apple, but not bad for a latecomer.
It goes without saying that comparing Apple Inc. (NASDAQ:AAPL)’s iPad to the Surface tablet is not exactly “apples to apples.” However, the numbers can still be an eye opener.
As noted in the same piece from CNNMoney, the cost of parts for the iPad is $293 with a profit of $296. This is in contrast to a cost of parts of $271 for the Surface, with a profit of $315.
With all this in mind, it is important to note that the company only makes a profit when a unit is actually sold. And as we all know at this point, the iPad – including its newly popular iPad mini – is well out in front in terms of sales.
Do you find it hard to believe that the Microsoft earns more profit on the Surface than Apple Inc. (NASDAQ:AAPL) does on the iPad? Share your thoughts below.
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