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[TT] Surface gets teardown treatment, costs $271 to build the 32GB model. - Page 12

post #111 of 123
Quote:
Originally Posted by XNine View Post

Indeed. http://en.wikipedia.org/wiki/United_States_v._Microsoft
It was huge. Of course, back then the internet was really an infant. There was Prodigy and AOL and a few small ISPs. Dial-up was the norm (you were hauling ass if you had a 56K modem), and this story was huge on the News (both TV and *GASP!* the radio.) I mean... Think of 90% of the news stories out there today, but focus all of that attention on this particular story. In fact, in 1998 when all this went down, Mr. Gates was assaulted with a pie. http://www.youtube.com/watch?v=5IcStolRUJg

i was an infant, around a month or two old lol
     
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post #112 of 123
Quote:
Originally Posted by j3st3r View Post

Wow I love how some of you Microsoft kids pretend like RnD on this thing cost trillions of dollars when the idea and market for tablets has been out for HOW LONG NOW?

Please... Microsoft ripping people off just like Apple ripping people off just like Samsung ripping people off.

WAKE UP PLEASE. NONE OF THEM LIKE YOU.

What's RnD?
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post #113 of 123
Quote:
Originally Posted by startekee View Post

So about a $200 dollar profit? That's rediculous

Then add in the Windows 8 software development cost and time. Couple that with the build cost and you are probably on a thin margin for a good while for Microsoft. The surface isn't just the parts that make the build it is also the operating system and cost of development. I imagine you factor that in and there is very little profit for MS in the first 6 months of sales and that is assuming that the product actually takes off and gathers a strong hold in the market.

Also, remember for now, I don't think they are even profiting off of their app store.
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post #114 of 123
Quote:
Originally Posted by lacrossewacker View Post

Not like this is their first OS device and not like they're including Microsoft Office and its not like they had to pay 10billion in Research and Development this past year.....

That is pennies for a company like Microsoft.
post #115 of 123
I find it amusing when people complain about companies profiting off of their goods. It's capitalism people, get over it. Companies can and will charge whatever they think is best. They factor in things like R&D, cost of manufacturing, retail gross profit margins, price of competing goods, what the price will do to marketshare, etc.

There are plenty of products out there with higher gross margins than 40-50%. I worked retail management for a few years, and there were products with 80%+ gross margin. That $5 8-pack of AA batteries you purchased, cost the retail store about $1, and cost the manufacturer about 30 cents. That's the equivalent of a $500 tablet costing $30 to manufacture.
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post #116 of 123
Quote:
Originally Posted by DSgamer64 View Post

Quote:
Originally Posted by lacrossewacker View Post

Not like this is their first OS device and not like they're including Microsoft Office and its not like they had to pay 10billion in Research and Development this past year.....

That is pennies for a company like Microsoft.

No, it's still billions. Just because they're rich doesn't mean the value of their projects doesn't cost what it would cost you. They're a business, they have to make back what they invest, then make more on top. It's called profit. Without profit, your business fails.
post #117 of 123
Quote:
Originally Posted by barkinos98 View Post

do you actually think the surface will surpass the ipad at selling? lol thats like the best joke. nearly all of OCN doesnt understand the fact that the brand and people's want and need to showoff sells, not the hardware in it. i know the i5 surface would be as powerful as a ultrabook, but do you actually think a rich soccer mom cares about it when she can buy an ipad and show off to her friends? people are in a desperate need of attention, and apple is kinda taking advantage of it.
Quote:
Originally Posted by nathris View Post

Apple and Microsoft will always have a bigger markup than Android because they have to pay their employees to build the OS, while Android is FOSS, so its simply a matter of grabbing some binaries from the hardware manufacturer and compiling the latest AOSP. If they tried to sell at the <10% markup that many Android tablets sell for they wouldn't be able to pay their big software teams.

My friend mentioned an iPad for his photography work (a tablet to show his gallery and sketch ideas to clients) but monaed about the cost.

I showed him the Surface (Windows RT) for the same price and the Nexus 10 for £80 less. He was more interested in those and went off to watch Surface and Nexus 10 videos and reviews and gleem whatever information he can from them. I think it's getting the Surface + stylus.

I dunno about the states, but only rich people want the iPad over here. People with money on their minds care more about saving money and getting something that does the exact same job but with more functionality than having something to "show off"... Not that there's anything to show off about having an iPad.
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post #118 of 123
Quote:
Originally Posted by Rubers View Post


I dunno about the states, but only rich people want the iPad over here. People with money on their minds care more about saving money and getting something that does the exact same job but with more functionality than having something to "show off"... Not that there's anything to show off about having an iPad.

exactly what i said/ tried to say. here in turkey everyone, no matter the income, wants something Apple to showoff. you wouldnt imagine how many friends of mine bought the iphone 5 because its too expensive in turkey rolleyes.gif
     
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post #119 of 123
The real problem is no matter what rationalizations anyone lays on it, Microsoft is not going to be able to compete in the Apple price point but could possibly win the Android price point. Their current releases do not take advantage of this.
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post #120 of 123
Cost != Price

Price is what the market will bear. If people won't pay $500 for it, so be it.

I honestly can't stand people who say things like "You are making too much money." like THEY would turn down more money if they could get it.
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