Microsoft Surface Price Too High, Says Sterne Agee - Business Insider
Microsoft is charging way too much for its Surface tablet, and it's doomed to come in last place, says Sterne Agee analyst Shaw Wu in a new note this morning. With Microsoft charging $499 for an intro level Surface without cover, and $599 for the Surface with its keyboard cover, Microsoft is going to be fighting Apple at the high end, while leaving room for Google and Amazon to clean up on the low end.
He writes, "Surface's high pricing could prove to be a fatal mistake and relegate it to be a niche No. 4 or No. 5 player. We believe Nexus 7 and Kindle Fire HD will likely see considerably higher volume given their low $199 price points and stronger ecosystems with iPad retaining its commanding No. 1 position." (He thinks Microsoft should have charged $300 for the Surface plus the cover.)
Microsoft is charging way too much for its Surface tablet, and it's doomed to come in last place, says Sterne Agee analyst Shaw Wu in a new note this morning. With Microsoft charging $499 for an intro level Surface without cover, and $599 for the Surface with its keyboard cover, Microsoft is going to be fighting Apple at the high end, while leaving room for Google and Amazon to clean up on the low end.
He writes, "Surface's high pricing could prove to be a fatal mistake and relegate it to be a niche No. 4 or No. 5 player. We believe Nexus 7 and Kindle Fire HD will likely see considerably higher volume given their low $199 price points and stronger ecosystems with iPad retaining its commanding No. 1 position." (He thinks Microsoft should have charged $300 for the Surface plus the cover.)