A Microsoft Surface RT tablet with a Touch keyboard costs $284 to manufacture; it sells for $599, iSuppli says. Without the keyboard it retails for $499. The keyboard itself costs $16 6o $18 to manufacture.
A similar New iPad costs $332.85 to manufacture, comes with no keyboard and retails for $599, according to an iSuppli teardown.
Not including the cost of software that means the profit margin on a Surface RT is $297 vs $266.15 for a similar iPad that comes without a keyboard.
So Microsoft is charging the same premium price for Surface RT, throwing in a keyboard and is still making more per device than Apple. Toss into the mix applications and services that customers might want to buy into and Surface becomes an even more potent revenue generator.