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Microsoft targets iPad pricing

Microsoft has gone official with pricing on its Surface RT tablets. Most people have been hoping the Microsoft Surface RT tablets would come in at less than Apple’s hugely popular iPad. However, Microsoft’s pricing puts Surface in close competition with comparable third generation iPads and higher than the iPad 2.
 
The 32GB Windows Surface RT tablet without the Black Touch cover, which also doubles as a keyboard, is $499. That makes it $100 more expensive than the entry-level Apple iPad 2 at $399. The $499 entry price for the Surface RT tablet puts it on par with pricing for the 16GB “New iPad”.
 
If you want the Touch Cover with its integrated keyboard, that option is $100 when you order, or $119.99 as an add-on later. You can pre-order the 32GB version with the cover for $599.
 
 
The third version has 64 GB of storage and ships with the Touch Cover – it will cost you $699. Any of the three tablet versions can be pre-ordered today with delivery expected by October 26.
 
Analysts seem to think that Windows 8 tablet pricing is too expensive, however, what do you guys think?
 
In other Surface news, you can catch Microsoft’s first ad for the new tablet here:
 

Source: Microsoft



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By Tony Swash on 10/16/2012 3:15:59 PM , Rating: 1
quote:
Just like Apple and Google, MS get his own marketplace with a 20-30% cut from everything sold there. It's also a great opportunity to promote Bing, Skype, Skydrive, etc. It also consolidate the whole ecosystem. XBox, Windows Phone, Surface, Windows 8. A user can have a real integrated experience with MS starting octobre 26th.


The problem is that the digital content does not generate big profits, in fact it's little more than break even. Even iTunes is not much better than a break even operation designed to add value to hardware (where Apple's profit are made). Amazon who sell a vast emporium of stuff only make razor thin margins doing it. Google of course makes plenty of money on its ads business but all the indicators are that that is primarily still a desktop/browser operation and that ad profits from mobile devices are elusive for Google.

So what on the content side offers Microsoft sizeable profits?

Remember that Microsoft needs to develop a big new profit center in the new mobile market if it is not to see it's growth stagnate along with the PC market. It's that imperative that is driving both Windows 8 and Surface.


“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith

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