New Rumored Price on Microsoft's (MSFT) Surface Windows RT Could Disrupt Tablet Market
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Things might be looking bad for competition after all.
According to Digitimes on Thursday, the price of Microsoft's (Nasdaq: MSFT) new Surface Windows RT might start off at $199. Given that Apple's (Nasdaq: AAPL) iPad starts off at $499 and iPad 2 at $399, this might spell trouble.
Digitimes' sources have said that Microsoft is aware that introduction of the Surface tablet has offended its peers and the $199 price level will help it achieve a 30 percent tablet market share goal. This is a double-edged sword, given that Hewlett-Packard (NYSE: HPQ), Dell (Nasdaq: DELL), Lenovo, ASUS, and others are all in current development of Windows RT tablets. Should Microsoft undercut prices, then others might cease production altogether.
But, it is just chatter. Microsoft has said in the past that Windows RT would be priced to comparable tablets with Surface Windows 8 pricing in-line with ultrabooks. Plus, no other viable 9.7- or 10-inch tablet has been priced as low, with costs behind a move not making sense for most companies.
But, Microsoft has cash to burn. It almost seems to make sense that the Redmond, WA-based software giant would skip over making acquisitions and look to get a key product in consumers hands at a loss instead.
Still, if Microsoft's first tablet is priced to perfection, it could cause a paradigm shift in the tablet marketplace. Microsoft shares are indicated higher Thursday morning.
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According to Digitimes on Thursday, the price of Microsoft's (Nasdaq: MSFT) new Surface Windows RT might start off at $199. Given that Apple's (Nasdaq: AAPL) iPad starts off at $499 and iPad 2 at $399, this might spell trouble.
Digitimes' sources have said that Microsoft is aware that introduction of the Surface tablet has offended its peers and the $199 price level will help it achieve a 30 percent tablet market share goal. This is a double-edged sword, given that Hewlett-Packard (NYSE: HPQ), Dell (Nasdaq: DELL), Lenovo, ASUS, and others are all in current development of Windows RT tablets. Should Microsoft undercut prices, then others might cease production altogether.
But, it is just chatter. Microsoft has said in the past that Windows RT would be priced to comparable tablets with Surface Windows 8 pricing in-line with ultrabooks. Plus, no other viable 9.7- or 10-inch tablet has been priced as low, with costs behind a move not making sense for most companies.
But, Microsoft has cash to burn. It almost seems to make sense that the Redmond, WA-based software giant would skip over making acquisitions and look to get a key product in consumers hands at a loss instead.
Still, if Microsoft's first tablet is priced to perfection, it could cause a paradigm shift in the tablet marketplace. Microsoft shares are indicated higher Thursday morning.
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