Microsoft Surface: Estimated cost shows priority for profits

Educated estimates of the cost of building a Surface tablet reveal Microsoft priced the device to ensure a healthy profit.

By Jared Newman, PC World |  Consumerization of IT, Microsoft Surface, tablets

Instead, Microsoft set a starting price on par with Apple's iPad (but with double the storage). Although the higher price may scare off some potential buyers, it avoids angering other PC makers by undercutting them, and stays out of the budget tablet market, which can be difficult to escape.

The $499 starting price also sends a message that the Surface is a premium tablet, worth at least as much money as an iPad. And for Microsoft, each one is just as profitable.


Originally published on PC World |  Click here to read the original story.
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