14 DAY TRIAL // Microsoft will launch the Surface tablet on October 25 during a New York event, but the company has remained tight-lipped on pricing information.
Sameer Singh, an analyst with Finvista Advisors, said in a blog post that Microsoft Surface is expected to be priced in between $399 / €310 and $499 / €387, depending on the purchased version.
Singh estimated the price based on the hardware components to be installed on the Surface. For example, the display is expected to be the most expensive part, with an average price of $66.95 / €52, while the processor and the camera are likely to cost $21 / €16 and $4.1 / €3 respectively.
Manufacturing costs for the Surface will go as low as $10 / €7.7, Singh revealed in the blog post, which will bring the overall pricing of the tablet to $399.
“Based on this, I expect the Surface RT to launch at a price of $399-$499 (excluding the smart cover / keyboard), giving Microsoft a gross margin of roughly 25%-35%. I expect most Windows RT tablets to be priced at the same range as well, with comparable margins,” Singh said.
The top version of the Surface tablet, also known as Surface Pro, will cost around $900 / €699 when it will go on sale, the analyst said.
“Most mid-range x86 Windows 8 tablets should retail at the same price (with higher gross margins), with high end models (specs comparable to the Surface Pro) priced around $1000,” he said.
Microsoft CEO Steve Ballmer on the other hand hinted last month that the Surface could be priced from $299 / €232, suggesting that such a price tag would allow it to challenge the tablet market leader iPad.