Linked by Thom Holwerda on Tue 14th Aug 2012 15:36 UTC
Windows "According to an inside source, a session was held at Microsoft's recent TechReady15 conference in which all the launch details were laid out. If things go according to the plan detailed then, the Surface for Windows RT tablet will be launching October 26th - no surprise there - at a compelling price of $199." My wallet just squealed in pure bliss.
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Dumb Move
by galvanash on Tue 14th Aug 2012 19:39 UTC
galvanash
Member since:
2006-01-25

I said it when they announced this thing... They should price it identically to the iPad if they they are serious about being a long term competitor. They are making the same mistake that everyone else makes when trying to compete with Apple...

They should be trying to make a better product at the same price (so they can, you know, actually make some money on it). If they don't feel they have a better product yet they should go back and spend some money and improve it until they feel it is a better product. They won't get a second chance with this.

I have to say that personally I think the product has potential. It has some very compelling and creative features and if they get some developer love they might be able to make a dent in the table market with it.

But...

Pricing it at $199? They just make it look like a cheap wannabe. Sure it will put the product in more hands faster (which definitely affects developer confidence positively), but as a developer that pricing does not give me any sense that they have confidence in it. It makes it feel like an experiment, i.e. "lets give it away and see if it sticks"... Why should I bother with that?

Part of the reason that developers flock to Apple devices is that they are not cheap. Apple makes gobs of money - no one is seriously worried about the product being dropped any time soon. How long will Microsoft bankroll a product when they lose money on every sale? Will it ever be popular enough that they can actually increase the price (or decrease the costs) enough that the question of its continued existence goes away? Do I want to try and market my software to the "I really wanted an iPad, but this was cheaper" demographic???

On top of that, pricing it to make a profit on it would have at least given their OEMs a small sense of hope. They could at least have tried selling "cheap" Windows 8 tablets as an alternative to the pricy Microsoft product. Fighting over the leftovers is better than nothing at all... But at $199? Why bother even trying?

They should come out at $499 and fight for the 2 or 3 years it will take to get some traction (and it will take that long either way). It is definitely a better product than any of their OEMs can make, so that isn't worth worrying about. Let Android guys fight over the crumbs in the market, Microsoft should focus solely on Apple - that is their only real competitor. They need to try and beat them at their own game for once.

After they have a bit of traction they could take advantage of economies of scale and probably drop the price some. But it is stupid to come out the gate losing money on every sale - it won't work...

Sorry, they are totally screwing up going this route out of the gate...

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