Microsoft Needs to Cut $200 (€150) Off the Surface Price – Analyst

Microsoft’s first tablet is too expensive, DFG claims

By on December 5th, 2012 14:02 GMT

Microsoft is yet to release official sales figures for the Surface tablet, but market researcher DFG claims the company’s first tablet in history is yet to impress.

DFG said that “sales on Microsoft’s Surface RT tablet continue to disappoint,” without actually releasing some estimates on the number of tablets sold by the Redmond-based technology titan till now. It did, however, mention that Microsoft had recently adjusted sales projections by 500,000 to 600,000 units.

”This combined with Microsoft's inability to launch Surface Pro tablets in volume in Q4 suggests that Microsoft's tablet strategy is in disarray,” DFG said according to The Channel.

One of the potential problems for Microsoft Surface’s slow debut is the distribution channel, as the company prefers to rely on its very own stores to sell the tablet.

Deliveries would be significantly increased if Microsoft agreed to sell its device through retail partners such as Best Buy, the analysts believe.

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

Pricing is another serious issue that could hurt sales of the Surface, DFG said, as the most affordable model without a Touch Cover comes with a price tag of $499 (€380). Microsoft should cut $200 (€150) from the Surface price if it wants the tablet to be successful, it added.

“The Surface RT price need to come down: $399 with the keyboard would be a good starting price,” DFG Director for Technology Research Mark Gerber told the same source.

The Surface tablet family will soon be expanded with a new product, as Microsoft will debut the Surface with Windows 8 Pro in January. This will actually be the first tablet running the full-featured Windows 8 Pro and legacy Windows apps, as the current Surface RT can only handle apps available in the Store.

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The Surface family will get a new member in January
   The Surface family will get a new member in January