Why there's no 16GB Surface RT

Microsoft confirms that Windows RT, tools, apps and Office RT need nearly half of the 32GB in its entry-level tablet

By , Computerworld |  Mobile & Wireless, Microsoft, Microsoft Surface

Unlike the iPad, the Surface RT also lets users store non-app content on MicroSD memory cards, which sell for around $30 for 32GB or $60 for 64GB, or on even cheaper USB flash drives. Microsoft also provides 7GB of cloud-based storage for free through its SkyDrive service; by default, Office RT saves its documents to SkyDrive.

One thing is clear: Microsoft's bottom line won't be affected by starting at 32GB. An analysis Monday by IHS iSuppli of the Surface RT's "bill of materials" (BOM), an accounting of the component and manufacturing costs, showed that storage space contributed just $34 to the BOM, or $17 for the additional 16GB.

By iSuppli's estimate, Microsoft will generate $315 for each 32GB Surface RT -- the list price minus the BOM -- for a margin of nearly 53%, higher even than Apple's entry-level 16GB iPad.

Gregg Keizer covers Microsoft, security issues, Apple, Web browsers and general technology breaking news for Computerworld. Follow Gregg on Twitter at @gkeizer, or subscribe to Gregg's RSS feed . His e-mail address is gkeizer@ix.netcom.com.

Read more about mobile/wireless in Computerworld's Mobile/Wireless Topic Center.


Originally published on Computerworld |  Click here to read the original story.
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