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Analysts wary of Microsoft tablet ‘fire sale’

Microsoft could make waves selling its Surface tablet on the cheap, but that could cause irreparable damage to its relationship with partners.

Would Microsoft try to price-match Google's $199 Nexus 7? Not likely say analysts.

Would Microsoft try to price-match Google’s $199 Nexus 7? Not likely say analysts.

(Credit: Microsoft)

Remember the $99 HP Touchpad fire sale that instantly turned a product fail into a sales win?
So, would Microsoft try to pull a Crazy Eddie and lowball its upcoming Surface tablet to make it an instant hit?
I asked a couple of analysts and checked with some industry sources familiar with Microsoft’s strategy, and so far I’m hearing that it’s unlikely.
“We’d be astonished to see a $199 price point,” said Rhoda Alexander, director of tablet and monitor research for IHS. “It would be giving away money and losing money at the same time.”
Roger Kay, principal analyst at Endpoint Technologies, also has serious reservations. “If Microsoft decided to go for the jugular and do the loss-leader to sell software, it would really screw with the Microsoft partners,” he said.
Kay continued. “There are already a lot of efforts underway and money has been spent [by partners] on getting products to come to market with Windows 8. If they mess with their partners like that they may lose them entirely,” he added.
Partners include companies like Dell, Samsung, and Lenovo, which Microsoft said on Monday would be bringing out RT versions of Windows 8 tablets and convertibles.
And those products are expected to be well over $199. “We expect to see something iPad-esque. In the range of $500…something in that ballpark,” said Alexander, referring to the less-expensive RT devices.

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Author:

I’m Liah Qureshi ( My real name is Irtiqa Qureshi, I go with Liah as my pen name). Im a girl in my 20 somethings, trying my bit to make this world a better place to live in. I am a Journalist and a stick-to-radio person. I write sometimes when I think my writings can make some productive change. Apart from being a Journo and a radio freak, I work as a freelance Voice Artist, a Counselor, a Blogger, a YouTuber (this happens just sometimes and that too randomly plus i don't have a fan base or something like that on YouTube :P ), Social Activist and an Emcee too (all on an individual level). I love to study Psychology in my free time(If ever I get some). And I am Loving my Life. You can Check out my Social Media links given on this page.

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