Microsoft Surface for Windows RT tablet coming October 26th for $199?

[HotelUser]

http://www.engadget.com/2012/08/14/microsoft-surface-199/


We'll admit to being a little blown away when Microsoft launched the Surface (http://www.engadget.com/2012/06/18/hands-on-with-microsoft-surface-for-windows-rt/) -- it was an impressively polished tablet that we had heard barely a whisper of leading up to the mysterious launch event. But, there was one thing that we were still left wondering: how much would it cost? Now, with Acer getting all in a huff (http://www.engadget.com/2012/08/07/acer-tells-microsoft-to-think-twice-about-surface/) about competition and Microsoft conceding (http://www.engadget.com/2012/07/26/microsoft-admits-surface-might-ruffle-oem-feathers/) that some OEMs might be a little upset when this thing ships, we might just have an idea for you. According to an inside source, a session was held at Microsoft's recent TechReady15 conference in which all the launch details were laid out. If things go according to the plan detailed then, the Surface for Windows RT tablet will be launching October 26th --no surprise there (http://www.engadget.com/2012/07/18/microsoft-windows-8-ship-date-october-26-confirmed/) -- at a compelling price of $199.
That MRSP, almost certainly lower than Microsoft's own cost, would line it up against the Nexus 7 (http://www.engadget.com/2012/06/28/nexus-7-review/) and even the Kindle Fire (http://www.engadget.com/2011/11/14/amazon-kindle-fire-review/). It would put Windows 8 on the map in a big way and give a lot of people a lot of reason to try out an operating system that is going to feel rather different (http://www.engadget.com/2012/05/31/windows-8-release-preview-detailed-impressions/) than previous incarnations. The question is: will it drive enough sales of media and apps for Microsoft to recoup its loss? Or, will companies like Acer put up enough of a fight in the months between now and October to keep Microsoft from undercutting its own partners? We'll find out soon, dear readers.

If this is true then it means Microsoft's willing to lose profit to gain marketshare too.

That is just so cheap I'd buy one just for the heck of it.

[xxMATTGxx]

I'll believe it when I see it.

[Ashley]

I'll definitely be buying one if that's really the price.

[HotelUser]

I'll believe it when I see it.

I'm a bit skeptical but it makes sense. Googles done this to make market share and Microsoft is in much more need of market share then Google. I wouldn't be surprised if the tablet was in the 200-300 dollar range.

[Chris]

If it's that price then I'll certainly be getting one. :P

[Mr-Trainor]

Definitely wasn't expecting it to be that low in price! (Although it's not confirmed yet).

[Stephen!]

I'm sure i read something before that said this was illegal? Selling your products at a stupidly low price to undercut your competitors?

[Chippiewill]

Sony made a massive loss on the PS3 for the first couple of years to establish Blu-Ray as the platform for HD Films.

I do not doubt that Microsoft would make a loss on this, not forgetting that Microsoft don't have to pay for their Windows licensing and they can leverage hardware partners to make it cheaper.

[xxMATTGxx]

I'm sure i read something before that said this was illegal? Selling your products at a stupidly low price to undercut your competitors?

But Google recently did it with the Nexus 7 so?

[Laurensh1]

It's not allowed but only to a certain price obviously. I hope it'll be cheap. I don't have a tablet yet and it looks very promising.

[Meerkat.$]

If its that price ill get one but im in uk..


xo

[GommeInc]

Depends on the price of the competition but price fixing could be an issue. If the Nexus 7, Surface, iPad and other tablets share the same price the relevant US body for competition would probably have a field day, assuming they care. The EU would go insane if tablets were pricing themselves the same, but that's EU law for you - they only really care about price rather than any relevant information like performance which really sets each product different from the rest.

There's also another law where selling products low and you're not making a profit is also considered illegal, but that only really concerns perishables.

[HotelUser]

Depends on the price of the competition but price fixing could be an issue. If the Nexus 7, Surface, iPad and other tablets share the same price the relevant US body for competition would probably have a field day, assuming they care. The EU would go insane if tablets were pricing themselves the same, but that's EU law for you - they only really care about price rather than any relevant information like performance which really sets each product different from the rest.

There's also another law where selling products low and you're not making a profit is also considered illegal, but that only really concerns perishables.

I think you're right in that antitrust lawsuits will arise from Microsoft's actions, but I don't think that's really going to stop them. Do you remember when office came out? Microsoft gave huge discounts, even included it along with Windows. They practically gave it away in many circumstances to gain marketshare. They did the same thing with Internet Explorer (giving it away included with Windows).

Microsoft is good at getting marketshare this way, even if it hurts their profits. They know that if they make people depend on their products, they can then raise the price, or adapt to the market later to profit from their venture. Microsoft makes more money from their business products now then they do from anything else, and this is why.

It's genius that Google's selling the N7 at a profit loss for marketshare, because they probably anticipate Microsoft doing the same thing to gain marketshare themselves. If Apple's smart, they'll release a lower end iPad to compete at a cheaper price (I doubt they'll ever sell tablets for $200 a pop), and with Google (and partners), Microsoft and Apple at war for marketshare it means consumers are going to get tablets at unbelievably cheap prices.

[GommeInc]

I think you're right in that antitrust lawsuits will arise from Microsoft's actions, but I don't think that's really going to stop them. Do you remember when office came out? Microsoft gave huge discounts, even included it along with Windows. They practically gave it away in many circumstances to gain marketshare. They did the same thing with Internet Explorer (giving it away included with Windows).

Microsoft is good at getting marketshare this way, even if it hurts their profits. They know that if they make people depend on their products, they can then raise the price, or adapt to the market later to profit from their venture. Microsoft makes more money from their business products now then they do from anything else, and this is why.

It's genius that Google's selling the N7 at a profit loss for marketshare, because they probably anticipate Microsoft doing the same thing to gain marketshare themselves. If Apple's smart, they'll release a lower end iPad to compete at a cheaper price (I doubt they'll ever sell tablets for $200 a pop), and with Google (and partners), Microsoft and Apple at war for marketshare it means consumers are going to get tablets at unbelievably cheap prices.
It's shocking you can buy the Nexus 7 16GB for £199 through ebuyer.com over here, I'm sure you know that we usually get the rough end of the stick :P There are strong rumours going around that Apple are considering a smaller iPad. Have you heard of them? It's a smart move because so many people buying 7" Tablets (Nexus 7, Kindle Fire etc) are saying how it fits perfectly in the hand compared to 10" Tabs. It's strange, people want larger smartphones but they want smaller Tablets:P We're slowly moving into a comfortable medium.

The Surface does look very impressive, and if Microsoft make a loss on it the end customer is going to lap it up for that price. As for Office, is that the current edition? They did a similar tactic with Windows 7 by selling it for cheap - getting people buying it and then putting the price up. A smart move as it did make it incredibly popular and well used.

[xxMATTGxx]

Good job that old Anti-Trust thing is over and done with eh? :P

[Chippiewill]

Good job that old Anti-Trust thing is over and done with eh? :P
They're more interested in Google, Facebook and Apple now..

[GommeInc]

They're more interested in Google, Facebook and Apple now..
Germany love Facebook at the moment, reopening their anti-trust suit over the face recognition technology :P