The saga that is the Microsoft Surface tablet continues with an analyst stating the obvious - its prices are too high.
Microsoft launched two versions of the Surface tablet, the Surface with Windows RT in late October 2012 and Surface with Windows 8 Pro in mid-February. What has been a common theme of criticism of the Microsoft tablet has been its price tag.
The Surface with Windows RT is priced at $499 for the 32GB-tablet only variant $599 for the 64GB tablet-only variant. Customers who want to add a black Touch Cover need to add an additional $100.
The Surface with Windows 8 Pro is priced at $899 for the 64GB model while the 128GB model is $1 shy from reaching the $1,000 mark.
Motley Fool senior technology analyst Eric Bleeker took the prices into account in a recent note and how slashing prices could benefit Microsoft.
"Microsoft is cutting licensing costs but what you have to think about is the rock and hard place that Microsoft is in the tablet space," said Bleeker.
The Motley Fool analyst dismissed Microsoft's suggestion it could compete in the seven-to-eight-inch tablet space if they don't adjust prices.
"The problem with Surface was that it was priced a bit too high," said Bleeker. "If you look at the initial price of $499 for the entry-level Surface, you need an extra $100 for the keyboard which is a near necessity. And following the Surface we haven't exactly seen a flood of Windows 8 tablet interest, partly because of the Windows expense licensing model."
Bleeker added Microsoft is facing "an uphill struggle" if they continue with the current model.
The analyst's note comes as Samsung confirmed they will discontinue selling its Windows RT tablet - the Ativ Tab - in Germany.
The price for the Ativ Tab has also been a bit too high. Priced at €600, or $780 when converted to the U.S. dollars, people might as well buy the 32GB iPad which is available for $429.
"We will continue to pursue our multi-platform strategy, which includes the Microsoft Windows platform," a Samsung spokeswoman said, according to PC World.
Related Articles:
- Microsoft Surface Pro News: CEO Steve Ballmer 'Super-Glad' with Tablet, Says Surface Won't Dominate Volume
- For reviews on the Microsoft Surface with Windows RT, click here.
- Microsoft Surface Pro Review Roundup: Battery Life, Price, Weight Among Issues with Windows 8 Pro Tablet Critics, click here.
- For the Microsoft Surface with Windows RT specs and definitions, click here.