So for Microsoft you have to think that whatever profit they make, $55-$100 would have to go to Samsung, whereas, Samsung would have to pay themselves a much lower licensing fee. And it wouldn't surprise me if Samsung sell the Slates at a loss. Because they can afford it, and Samsung makes money back if they sell a lot of units

See how easy it is?

PaoloM, you have a point in that Samsung does profit from a Surface sale, too. But we all know that MS's licensing profits comes from replicating software, which can be done infinitely. Whereas, Samsung's profits is physical-based, so it not as scalable. So, Samsung can never compete with Microsoft.