Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL) are making the highest profit margins from the sales of their tablets followed by Google and Amazon, according to research firm IHS.
Apple is the leader in tablets market and has gained high profits from its Ipad series. The recent launch of smaller-sized tablet, the iPad Mini that went on sale on Friday has a price tag of $329. Ipad mini costs roughly $305 in parts and labor for the 32GB Wi-Fi-only model, with 49 % margin, IHS analyst Andrew reported. Whereas price of 16GB model is about $295 and it sells for $499.
Microsoft’s Surface tablet presently costs about $267 that went on sale on Oct. 26 priced at $499.
Apple’s third generation Wi-Fi iPad with 32GB of memory and with a screen 9.7-inch costs $333 and retailed for $599, for a 44% profit margin. The 16GB model cost $316 and priced at $499, for a profit margin of 37 %.
Google’s 7-inch Nexus 7, costs $159 (8GB model) and sells for $199, with profit margin of 20%, according to IHS. Google makes 33 percent margin on its 16GB model, which costs about $167 and sells for $249.
Amazon’s 7-inch Kindle Fire HD costs $174 (16GB model) and sells for $199 with a profit margin of 13%.