Microsoft's Tablet Will Cost More Than $600 -- REPORT

Steve Ballmer Microsoft Surface

Photo: AP

Microsoft’s Surface tablet will cost over $600 for the ARM-based Windows RT version, DigiTimes reports, citing industry sources.That price sounds right. Microsoft said it expected the Windows RT tablet “to be competitive with a comparable ARM tablet.” The Surface RT comes in 32 GB and 64 GB models. A 32 GB wifi iPad (based on ARM architecture) is $600.

The Surface running a fuller version of Windows, powered by Intel chips will cost $799 says DigiTimes.

The fact that Microsoft isn’t pricing the Surface more aggressively shows what a bind the company is in here. It could make the price much lower and try to take market share. But then it alienates its partners and puts them out of business.

So, it has to price the Surface in line with the market, which means people will skip the Surface and just buy iPads.

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