14 DAY TRIAL // Microsoft finally stepped into the tablet market with the Surface, but its $499 (€380) starting price for the tablet isn’t quite a smart move, said Sterne Agee analyst Shaw Wu.
According to Business Insider, Wu believes that Microsoft should price the Surface a lot lower, mostly because it’s late to the tablet party and such a high price tag could be a “fatal mistake.”
“Surface's high pricing could prove to be a fatal mistake and relegate it to be a niche No. 4 or No. 5 player. We believe Nexus 7 and Kindle Fire HD will likely see considerably higher volume given their low $199 price points and stronger ecosystems with iPad retaining its commanding No. 1 position,” he said.
Due to this price, Microsoft is very likely to lose the fight not only with Apple, but also with Google and Amazon, the analyst concluded.