Microsoft's Surface Costs $266 More Than Its Parts Added Up

Those teardown-and-cost-estimation whizzes over at iSuppli have torn apart Microsoft's new hero device, and it looks like Microsoft has baked in a healthy profit margin into ever Surface sold. The least expensive Surface starts at $500 and comes with 32GB of NAND flash. If you want a Touch Cover (and you want a Touch Cover) the total comes up to a cool $600. However, the total cost of materials, according to IHS is only $284. Amazon and Google may be barely breaking even with their tablets, but Microsoft's is firmly in Apple's profit-up-front camp.

Ubergizmo , Microsoft's Surface Costs $266 More Than Its Parts Added Up

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