Microsoft Surface: More Profit Per Tablet Than Apple's Ipad?
Posted 06 November 2012 - 01:43 PM
Posted 06 November 2012 - 02:00 PM
Well, duh! It's called market strategy.
MS will indeed have room to move on price should it be felt necessary.
It would have been stupid to start low - then have to drop to fire sale prices.
MS "showed up late to the game"
Not true. This product puts the iPad in the shade. Apple is now the competitor.
At the moment, it is Apple who are late to the game with the mini.
Posted 06 November 2012 - 02:10 PM
It's a good thing you are not running Microsoft otherwise the company would be bankrupt! The cost per tablet in the article doesn't take into consideration the costs of marketing, transportation/ distribution, R&D, and other overhead. If MS reduced the price to $399 there would be no room to recover these costs and no room to eventually make a profit.
Posted 06 November 2012 - 02:29 PM
Posted 06 November 2012 - 02:53 PM
Take a basic economics course, when you lower the price you get more sales...the costs of marketing and R&D are static and do not change per device (transportation and distribution costs are very small, <$10 per device even this decreases as volume increases to an extent). If they can increase sales by 50% with the price at $399 they will be in a much better position than if they made 50% fewer sales at $499 because they gained market share which takes money away from their competition (which leaves the competition with even less money to develop their next product). Being $100 cheaper than Apple with a better product makes that 50% number very realistic.
Posted 06 November 2012 - 03:30 PM
Apple makes its own processor, the iPAD has 1GB of DDR memory and ships with less flash than Surface and is sold for more $$$. It is hard to believe that the Surface makes more $ per device sold.
But since iSuppli says so and Engadget is running the story, I guess it must be true.
Posted 06 November 2012 - 06:04 PM
Posted 06 November 2012 - 06:12 PM
The surface RT operating system is not is not windows and there lies the problem. The confusion is that most people after seeing the product advertisement assume that it will run Windows applications. Just like when Apple originally came out with the iPad it had to have its own operating system which of course was the same as their phones. Apples operating system was well-established with their iPhone product-line before they brought out their portable device called the iPad. Microsoft unfortunately had many failed launches of Windows 7 phones and their windows eight phones just was launched recently.
On a different point completely have you noticed that the windows user interface " Metro" looks a lot like LACARS used on Star Trek?
Posted 07 November 2012 - 12:44 PM
If they put this price under the iPad people will think, that this Tablet will not compete because of the quality.
Of course I would like to see it with lower price to buy one.
And I also agree that the keyboard could cost less, $100 it's too much. I can say it could cost $50-$60 top.