What's new

Analyst: Microsoft Surface Pricing to Start at $399


Editor in Chief

Though Microsoft has yet to announce the pricing for its Surface tablet, one analyst is tipping the cost of the RT version between $400-$500 and the Pro between $799-$899.

"Microsoft has been very tight-lipped about the price of its Microsoft Surface range of tablets," Sameer Singh with India-based consulting group Finvista Advisors wrote in a blog post.

Singh was apparently tired of waiting and decided to come up with his own estimate, based on former bill of materials (BOM) calculations for devices like the Kindle Fire, Nexus 7, and iPad.

For the RT version of the Surface, Singh's breakdown lined up all of the components, including the display ($66.95), touch screen ($43.71), processor ($21), camera ($4.10), and battery ($25.74), for a total of $298.82. Add a $10 manufacturing cost, which bumps the direct costs to $308.82.

"Microsoft would be under considerable pressure to ensure that the Surface is priced in the same ballpark as tablets from OEM partners," Singh said. "Unfortunately, OEMs are also at a cost disadvantage," he said, since the companies need to pay Microsoft a $50-$65 licensing fee per Windows RT device.

Continue Reading @: Analyst: Microsoft Surface Pricing to Start at $399 | News & Opinion | PCMag.com
From what we are now starting to see from the other OEMs for hybrid ultrabook/tablets these prices are looking a little high. Though Windows RT tablets haven't made an appearance yet, MS partners have been revealing Atom based (x86) Windows 8 tablets in the $400-$500 range with extended battery keyboard docks bumping the price up to the $750 range.

Of course these could be lower spec than the Surface Pro accounting for some of the price difference but with a battery doubling (16 hrs being cited) keyboard dock being thrown in and bringing the price to the same as a Surface Pro which does not have extended battery and maybe (or maybe not) with only a touch cover some of the OEMs may beat MS to the punch with better pricing and sooner availability for full blown Windows 8 tablets.
Would be great if MS brought it in at $300, but may be a little unrealistic. $400 seems ideal for market and MS. And it appears to be a realistic price point. It may anger a few OEMs but MS needs market share. $500 is getting into the ipad range and with no market dominance, unproven OS, and BAD marketing, this will be a flop for MS. At $500, many will either look at other OS or to OEMs for their wares. Devices in hands with consumers buying apps is the only thing MS needs to be concerned with at this point.