Analyst: Surface Price Needs To Drop By At least $200

microsoft_surface_needs_a_price_cut

Microsoft Surface is yet to get any official sales numbers.

Unofficial is another story altogether — with plenty of news, views, estimates, and predictions surfacing (sorry, can’t help it) almost daily.

The broad consensus is that while the device may not be an all-out flop, it is yet to impress.

So much so that Microsoft had cut down its order of the ARM power slate by half. Now market research firm DFG claims that the Redmond technology giant has readjusted its sales projections by at least 500,000 to 600,000 units.

Needless to say Microsoft’s tablet ambitions are in a bit of disarray.

Speaking to The Channel, Mark Gerber, the Director for Technology Research at DFG said that Microsoft’s Surface RT tablet continues to disappoint:

“This combined with Microsoft’s inability to launch Surface Pro tablets in volume in Q4 suggests that Microsoft’s tablet strategy is in disarray”.

One of the problems cited is Microsoft’s slow distribution channel, as the company primarily prefers to sell the tablet on its own stores (online and otherwise). This could be well rectified if Microsoft agrees to sell the device through regular retail outlets like Best Buy and friends:

“Lack of distribution is killing the product. [The lack] of retail exposure at Best Buy and others is severely depressing sales”.

Pricing is cited as another reason for the slow take off of the Surface tablets. The base model with the Touch Cover retails for $499. The research firm believes Microsoft should cut down the price by around $200 to make these devices fly off the shelf:

“The Surface RT price need to come down: $399 with the keyboard would be a good starting price”.

The man’s got a point. Personally, I believe it is a combination of all these factors (and a few other ones like the looming Surface Pro) that is causing trouble for the Surface RT. The tough competition isn’t helping things one bit.

Cutting down the order by half is no small thing, it must be remembered.

Microsoft may soon need to make a choice: either profits or sales as far as Surface RT is concerned.

NOTE - If you would like to find out more about the next version of Microsoft Windows - Windows 9, here are some links you should probably check out.

  • siddharthbandhu

    Really? He’s a fool. Every Windows 8 analyst is a fool. They’re proven wrong always.

    • Jack Sparrow

      It’s their time to talk, in season, best way to gain publicity.

  • http://twitter.com/DStephensJr Dan Stephens

    Historically, Apple products have always cost more than Windows products. This has been a boon to sales of Windows machines.
    Microsoft has been so busy cloning the Apple business plan that they have dropped the date what brung them to the party. They risk going home alone and unhappy.
    The $499 Surface may be a match for the iPad low end, but that alone isn’t reasone to choose it over the iPad. At 32GB, you get a 16GB machine without the really cool cover/keyboard. Loss of a selling feature and loss of memory put it behind the iPad.
    Add the keyboard free and the surface starts to shine, then drop the price by a hundred bucks and I think they have something there.
    I really wanted one until I saw the price. Now, I see it compared to the Clover Trail machines and I think I’ll pass on Surface RT. It is a reall cool looking machine, but I can select one of the Atom machines for the same price without a keyboard, so why would I pay that much for Surface?
    Now, I’m considering a full i3/5/7 machine and the price on the Surface Pro is just too high to swing for a machine that can’t take over all my needs. I really hoped for a full power tablet that could run all my standard apps, but the price is a bit steep.
    On the other hand, prices allways come down with a little patience…

  • garak0410

    I have a Surface 64 GB. When the prices were released, I was pretty shocked. It was high but I had sold my Android tablet and saved some money so too the dive. It is a nice device but since I got my Lumia 920, I find myself using it much more than the Surface. It is just so fun to use. I’m not giving up on my Surface but I am uncertain of its future.

    • WillyThePooh

      As long as Win RT is a success, then you don’t need to worry your surface’s future.

  • http://www.facebook.com/brenton.klassen Brenton Klassen

    I don’t think Microsoft cares whether we buy a Surface or another Windows 8 device. The Surface is nothing but an example to OEMs and a flagship device for their TV ads.

  • WillyThePooh

    Haha, I just told my friend that I won’t buy the surface unless it is under $400 w/ keyboard after it was released in October.

  • http://twitter.com/digitalsyrup Digital Syrup

    I think it’s ridiculous the Surface isn’t next to the other tablets on retail store shelves. Assuming buyers are going to go online or travel to their nearest Microsoft Store (the closest one for me is more than a few hours away). The Surface is a great product, I’ve used it and you can see the time Microsoft put into engineering it.

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