Microsoft Slips on Surface Pricing Strategy, Should Have Been More Aggressive

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Edwincnelson

There are going to be a bunch of people who are going to jump and buy the Surface at this price so there is no incentive to come in any lower. The question is how low is the price going to go when they do drop it, and how fast will they get to that point? As is often the case the early adopters are going to get screwed.

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sta789

I just got paid $6784 working off my laptop this month. And if you think that's cool, my divorced friend has twin toddlers and made over $9k her first month. It feels so good making so much money when other people have to work for so much less. This is what I do, Red97.com

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Therealjappy

I don't follow tech news that much so I might get this wrong but it seems that the Surface comes with Office 2013 as well which may be why its more expensive than expected.

Does Office 2013 make the Surface more appealing? I'm still thinking whether to buy this or wait for a better product to come out like Samsung's ATIV.

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CaptiveCloud

Some of the posts here are so off base. LETS BE CLEAR, the IPAD is an oversized IPhone. Its the same OS. It is primarily designed for content/media consumption. Sure you can say the IPAD can create documents, but if you have ever used an IPAD to create documents, than you know your settling with a sub-par experience of document creation, it's un-natural and awkward at best.

What Microsoft did with Surface is a ground up reimagined OS, that is meant for not only content/media consumption, but also TRUE content creation as well. In includes a full version of the Microsoft Office Suite (Word, Excel and PowerPoint: worth $150 and you get it free). You also get a mail client, a full App store, lots of includes apps, a browser, unlimited FREE Music streaming (over 30 million songs, more than iTunes), a built in kick-stand (to watch movies, and work more naturally when at a desk/table), a full USB port, MicroSD Card slot. (You don't need to buy accessories to transfer files, photos, music documents, just use a USB stick or microSD card). The Surface is of course a full touch friendly device with dynamic informative attractive live tiles, (not static dumb icons like with IOS).

Lets also point out that the Surface has a full keyboard and mouse pad that acts as a cover when not in use. Now, with the Microsoft Surface you can watch movies, listen to music (for free), take pictures, video calls, download apps, surf the web, check email, socialize online, Tweet, Facebook, print, play games, and without compromise create documents using Office and a keyboard/mouse.

So lets be clear, The Microsoft Surface is a no compromise Tablet. Its completely mobile, thin and light. In fact, for most people The Surface RT can replace a laptop. What the Surface brings is a mobile touch friendly tablet, that also allows you to work the way you would traditionally with a keyboard/mouse when you want to and when it makes the most sense.

I am confident, once people try one out the decision to get one will be a no brainer!!! The Microsoft Surface RT give you value for your money.

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davelray

Meh, they missed the price point where this would have made a difference. I'll stick with my Nexus 7 for now. The only real thing the Surface has going for it is Office, and the RT version doesn't use Outlook, at least not yet. So for now it's an overpriced gadget just like the iPad. I'll wait and see what ASUS or Samsung offer in the next few months. And btw, yes having Office means you can get something done on it, but again, it's a 10" screen with a flimsy keyboard cover. How much productivity do you really think you will get accomplished on a tablet beyond responding to email? Sheesh, and someone called me a Microsoft plant awhile back. Even I'm not that big of a Microsoft fanboi to spout off the crap above.......

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maxeeemum

"Lets also point out"

"So lets be clear"

"I am confident"

M$ employee no doubt! Just signed up! LOL! Please !!!!!!!!!!!

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HeartBurnKid

I'm still trying to figure out how Google can manage to offer a Tegra 3 tablet (granted, a 7" one) at $200, and yet MS can't offer one for less than $500.

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Happy

$500.00 WITH the keyboard would have been the lowest they could have gone to have been popular. For now it's popular because of the novelty. But the novelty factor will wear off quickly and if they want the the product to not die off quickly they will need to price it more realistically. Why would I buy a Surface for the same price as an iPad? It's ridiculous. The whole appeal of a product like Surface is that it can be as good or nearly as good as an iPad AND function as a laptop and do it all at the same price as an iPad or lower. If they're charging a higher price for such a device it defeats the whole purpose of the device in the first place. This device (when you include the price of the keyboard) is even more expensive than a Transformer. It's ridiculous.

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Cregan89

I think it's important to realize that Microsoft is building a limited supply of these devices. Their intent is to showcase Windows 8, create buzz, and create an "elitism - you can't have one" sort of feeling around the device much like Apple devices have. Not to mention, they didn't want to piss off their OEM partners.

That's why, even though it probably should have been priced $100 cheaper if they wanted to sell maximum devices and maximize profit, they kept it slightly expensive and now it's already selling out. From a business standpoint I think it was pretty smart.

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stradric

I think you're totally spot on, Paul. The RT should be $500 with the keyboard. It's $600 for an ARM laptop. I can spend 7 or 800 and get an ultrabook. At the very least, people should wait until they get Linux running on the RT because who the hell wants a $600 laptop that can only run Metro apps?

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TheZomb

I think that if microsoft had priced more aggressively they would have blown their partners out of the market and in the long run hurt themselves.

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reded23

Well they sold out at that price...guess they got it right !

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Veni Vidi Vici

Yeah, sold out of what they produced which is.....?

It could be 50,000 units for all we know. Companies do this all the time. They intentionally produce a small number of units so it sells out easily to give the impression that it's wildly popular so the uneducated consumer becomes interested and perhaps buys it.

They didn't get the price right. Multiple people I know are in the market for a touch pad device. After seeing the price for the Surface, none of them are interested any longer.

MS already has a horrible reputation. Add that to the fact that this thing will have horrible app support compared to Apple and Android and then you never know how long MS will support this thing. Will it be another Zune or Kin?

No one I know is willing to risk $600 on it. Judging by forums, we aren't alone.

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Gauntylgrym

Whether it's Samsung, Google, B&N, HP, or Microsoft, I've always been of the opinion that in order to take Apple of their lofty throne of perceived superiority, these companies have to release a product of equal or GREATER capabilities AND quality...and then sell it for a noticeably cheaper price. Yes, maybe you have to lose money on it for a year or two, but if it's better AND cheaper, then you can erode Apple's marketshare, forcing Apple to either truly innovate (which they haven't done, in my opinion) or lower their outlandish prices.

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stradric

I'm not sure you can call Apple's pricing on the iPhone or the iPad outlandish. Certainly Macs are overpriced, but an iPhone 4S for $50-100 on contract is a steal. An iPod used to cost as much as an iPad 2 costs now. It's clear to me that the price/value ratio at Apple is far more favorable these days than it once was.

It's also clear to me that Apple commands a rather loyal fanbase that are locked into their ecosystem. Breaking that is like getting Ted Nugent to vote for Obama.

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dakishimesan

When Apple is selling the iPad 2 for $399 and it is equal or perhaps of greater quality/function than this product, Surface RT, maybe it's finally clear that Apple's prices aren't so outlandish after all.

The Surface Pro has potential, yet at $699-999 expected I would rather have an ultrabook.

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duncansil

Yes, they missed their chance to get a foothold. More important in my mind than tech specs is the app selection and availability. A bit of chicken & eggs, but if they want people to develop for the platform they have to create a demand. A 'must buy' price would have got that ball rolling.

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Veni Vidi Vici

EXACTLY!

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