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Will Microsoft Sell Surface Tablet for $199?
Will Microsoft Sell Surface Tablet for $199?

By Barry Levine
August 15, 2012 12:41PM

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There's been a good deal of grumbling among Microsoft's hardware partners about Microsoft entering the market as a tablet maker, especially with regard to producing low-cost tablets. Acer CEO JT Wang reportedly advised Microsoft to think twice, adding that it could create a huge negative impact.

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In its recently submitted annual report to the Security and Exchange Commission, Microsoft noted that its new line of Surface tablets "will compete with products made by our OEM partners, which may affect their commitment to our platform."

Earlier this week, Microsoft announced that Lenovo, Asus, Dell and Samsung will be releasing tablets based on its new OS, although long-time Microsoft-partner Toshiba said it does not have plans for a RT tablet.

We asked Ross Rubin, an analyst with Reticle Research, if he expects the price tag to be as low as $199.

Rubin said that it would be "surprising if Microsoft released a Surface tablet" at that price, although "all things are possible through subsidization" via carriers. But, he added, there is currently a "trend away from heavy subsidizing for tablets."

More Than Mere Tablets

Rubin also pointed out that the Surface is being positioned as not only a tablet, but also a PC with a keyboard.

In addition, Microsoft has recently been promoting the idea that there will be RT/ARM laptops, of which a Surface tablet/computer might be one example.

Even if a $199 price were limited to only the RT model, it could be competing with portable computers costing hundreds of dollars more. Because of this, Rubin suggested, the ceiling for the Surface might be around $699 or so.

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Tell Us What You Think



Posted: 2012-10-02 @ 8:15am PT
We have been told that they will not be sold for $200!!!
This does not mean that other manufacturers will not sell Windows 8 tablets for $200, and they will. But not the Surface.

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