Surface RT

Although the upcoming Microsoft Surface RT tablet will be priced $100 less than a similar Apple iPad, at least one analyst thinks the Windows 8 Tablet’s cost is too high. In an exclusive interview with Sterne Agee analyst Shaw Wu, on the Wall Street Journal’s Digits program, it was opinioned the Microsoft tablet PC would go the way of the failed Zune line of portable music players. Wu also compared the pricing strategy to the unsuccessful Kin phone.

Wu stated, “We think this new Surface tablet that they’re doing is actually quite interesting, the innovative cover keyboard – the cover doubles as a keyboard…, but we think what could end up hurting it is the high price point.” He went on. “They’re talking about starting it as $499, and then $599 with the innovative touch keyboard, but the problem is you’ve got Google and Amazon pricing their tablets at only $199.”

The analyst believed Zune could not compete on a price level equal to Apple’s iPod, but actually, the price was $50 cheaper than the Apple products in most circumstances and even less when price cuts were implemented.

In reference to the recent iPad Mini announcement Wu commented, “Right now, the vendors out there, including Microsoft, have a tough enough time competing against a $399 iPad 2. With the potential iPad Mini being priced at $299 or $349, which is obviously the lowest price point they’ve ever done, it’s going to make it even tougher for Surface to do well.”

Source: The Wall Street Journal