Analyst: Surface Price Needs To Drop By At least $200

The Channel, Mark Gerber, the Director for Technology Research at DFG said that Microsoft’s Surface RT tablet continues to disappoint:

“This combined with Microsoft’s inability to launch Surface Pro tablets in volume in Q4 suggests that Microsoft’s tablet strategy is in disarray”.

One of the problems cited is Microsoft’s slow distribution channel, as the company primarily prefers to sell the tablet on its own stores (online and otherwise). This could be well rectified if Microsoft agrees to sell the device through regular retail outlets like Best Buy and friends:

“Lack of distribution is killing the product. [The lack] of retail exposure at Best Buy and others is severely depressing sales”.

Pricing is cited as another reason for the slow take off of the Surface tablets. The base model with the Touch Cover retails for $499. The research firm believes Microsoft should cut down the price by around $200 to make these devices fly off the shelf:

“The Surface RT price need to come down: $399 with the keyboard would be a good starting price”.

The man’s got a point. Personally, I believe it is a combination of all these factors (and a few other ones like the looming Surface Pro) that is causing trouble for the Surface RT. The tough competition isn’t helping things one bit. Cutting down the order by half is no small thing, it must be remembered. Microsoft may soon need to make a choice: either profits or sales as far as Surface RT is concerned.]]>