Microsoft Surface Won’t Be Cheaper Than the iPad, to Cost $599 (€465)

An analyst believes that the Surface won’t be cheaper than the iPad

By on October 11th, 2012 11:18 GMT

Microsoft’s very own Surface tablet will go on sale later this month, but the Redmondians are doing an amazing job when it comes to keeping all information away from our ears.

Bob O'Donnell, program vice president of clients and displays at IDC, says that Microsoft’s tablet won’t be cheaper than the iPad and hits at a starting price of $599 (€465).

"I think it's $599 for the RT version of Surface and $999 for the Intel version, when it comes out next year. That seems to be the general consensus in the supply chain," he was quoted as saying by CNET.

"So, the big question is, will it be $599 with the keyboard or $599 without the keyboard.”

There are plenty of rumors concerning the Surface tablet these days and some of them are even suggesting that Microsoft’s iPad killer could come with a price of $199 (€155).

While this price tag seems very unlikely, an online contest that offers the upcoming Surface as a grand prize claims that it could cost around $350 (€270).

Another analyst however suggested that pricing would most likely start at $399 (€310), based on the cost of every single piece of hardware that will be integrated into the tablet.

“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,” Sameer Singh, an analyst with Finvista Advisors, said.

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