Print 104 comment(s) - last by TakinYourPoint.. on Oct 17 at 4:27 PM

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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RE: stupid stupid price
By nedsand on 10/16/2012 4:15:22 PM , Rating: 3
The point is that the I-Pad is dictating pricing points and we all know Apple has an extremely high profit margin on them. That's not how the tech market has normally worked in the past. Slim margins on high volume is what I like to see.

Gimmi more GeeBees for my buck

RE: stupid stupid price
By NellyFromMA on 10/16/2012 4:53:30 PM , Rating: 2
Businesses like to make money. The majority of Apple's money made hardware wise is by driving labor costs extremely low and dominating the purchases of various supplies used by using its large volume purchases to negotiate.

Microsoft isn't exactly in that position. I suspect they won't profit a ton from Surface sales. They certainly won't from other vendors devices as compared to traditional licensing costs.

It's just not Apples to Apples (pun intended)

RE: stupid stupid price
By TakinYourPoints on 10/16/2012 6:02:53 PM , Rating: 3
Apple's profit margins are partly driven by dominating the supply chain. They outlay billions for components years in advance. They also know they'll sell tens of millions of units so they can buy in larger volume, further driving down their component and production costs. This means that they can release higher specced tablets and smartphones with better components at prices that the competition cannot match.

Again, supply chain is a huge reason why this is happening. Apple is simply getting better components for less money. What is a good profit margin for Apple is a poor one for others using lower end parts, even if they're selling at the same price as the iPad or close. If other companies really try and undercut (like Amazon) then they stand to make no money on hardware, but they also have a different business plan since they have advertising on the lock screen, etc etc.

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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