The Cost Exposure of Apple and Microsoft & Amazon and Google by Profit Margins Analysis

Lately, the foreign media revealed the comparison of hardware costs of top tablets, including the new iPad, iPad Mini, Nexus 7, Kindle Fire HD, based on the prices of disassemble parts, the cost of marketing, sales and operating system not involved.

Microsoft Surface RT, 32GB of memory, costs of about $ 267, priced at $ 499, the profit margin of about 46%.

The New iPad, 16GB of memory, costs of about $ 316, priced at $ 499, the profit margin of about 37%.

The iPad Mini, 16GB of memory, costs of about $ 198, priced at $ 329, the profit margin of about 40%.

7-inch KindleFire HD from Amazon, 16GB of memory, costs of about $ 174, priced at $ 199, the profit margin of about 13%.


Google Nexus 7, 16GB of memory, costs of about $ 159, priced at $ 199, the profit margin of about 20%.


The above analysis showed that highest profit margin of Microsoft, followed by Apple, then Google and Amazon. Amazon has a powerful content terminal, not pursuing competing hardware, the same as shopping cart positioning. But Google is the lowest cost, reasonable price but fine quality, popular with most of people.

Samsung’s Price Hike: Charging Apple 20% More for iPhone & iPad Processors

As Apple claimed Samsung copied iPhone technology, Samsung finally tempted to hit back. Lately, according to a foreign media’s report, Samsung increased the price of mobile processors (inside iPad and iPhone) it provided the Apple by 20%. A source indicated that Apple initially refused to pay it. However, it came back and agreed to pay the additional costs when no alternative provider could be found. It is reported that the two sides of supply contract wouldn’t terminate until 2014.

We have reported that Apple launched the newest product, the iPad mini, and its A5 dual core processors supplied by Samsung. Last year, Apple purchased an estimated 130 million of application processors from Samsung to produce its iPhone and iPad. It is estimated that Apple will purchase over 200 million application processors from Samsung this year. However, Samsung Electronics and Apple offices in South Korea haven’t yet a comment on this massage. In my opinion, Samsung actually hit Apple with its price hike when Apple’s stock price was dropping and its Innovation capability plagued by doubts. The legal battle is growing in intensity after last year’s global lawsuit.