When Microsoft unveiled its Surface tablet earlier this week, it did not reveal pricing, promising only that both devices would be “expected to be competitive with a comparable ARM tablet or Intel Ultrabook-class PC.” Digitimes reports that its sources have indicated that prices will start at US$599 for the Windows RT model while the Windows 8 version would likely start above US$799.
As the report adds, these prices are significantly higher than that of products from competitors and will be Microsoft’s “biggest obstacle in the market.” While the argument can be made that this is somewhat of an apples to oranges comparison, the Apple iPad, the market’s dominant tablet, starts at US$499 (or even US$399 for the older iPad 2). Android tablets are priced even lower and the upcoming Google Asus Nexus 7 could start in the US$199 range.
Despite the Microsoft Surface’s relatively high price, Microsoft is expected to make only “limited profits” from sales. At the same time, it will be competing against hardware partners such as Dell and Hewlett-Packard who could not have been pleased with Microsoft’s decision to enter the tablet hardware market.
Pegatron has allegedly been tapped to manufacture the Microsoft Surface. Order volumes are not known at this time.
Read more: Digitimes