Rumour: Microsoft’s RT Surface Tablet to Cost $199 At Launch?

According to an insider at Microsoft’s recent TechReady15 conference for Microsoft staff which explained the full product launch details on October 26, it looks like the ARM-based RT version of the Surface tablet will be launched at a low $199 price point. This seriously undercuts Apple’s iPad and other tablets of similar spec. Microsoft launching its own tablet hardware has already caused several of its hardware partners (OEMs) to pull out of making their own version, but now this price could potentially make a lot more pull out. Acer in particular, has been highly critical of Microsoft’s new hardware strategy.

At this price, each RT Surface would compete with the likes of the Nexus 7 or Kindle Fire. Significantly though, it would be selling at a loss, with profit presumably being made through the sale of apps bought from the Microsoft store. This loss-leader strategy is similar to that which Amazon took with its Kindle ebook reader to establish it as the number one reader on the market, which has paid off. It’s still over two months to go yet however, so anything could happen.