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Surface Doomed To Come In Fourth Place At Best

  1. #1


    Posts : 902
    Win8.1 Pro, Desktop Mode

    Surface Doomed To Come In Fourth Place At Best


    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.)

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  2. #2


    N. Calif
    Posts : 2,584
    W10 Pro (desktop), W10 (laptop), W10 Pro (tablet), W10 (laptop)


    I have to agree that the Surface is priced too high. It's above the price point that I would be willing to pay for a tablet device. For $500+, I would rather have a laptop than a tablet. Not only that, I wouldn't consider the ARM based Surface RT but would want the x86 based Surface Pro model which costs even more making it far more likely that I would opt instead for a laptop.
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  3. #3


    Tropical Island Pair a Dice
    Posts : 3,030
    Windows 8.1 Pro x64/ Windows 7 Ult x64


    For the same price as the iPad, you get better specs, MS Office and USB port.
    Surface
    Quad Core
    2GB RAM

    iPad
    Dual core
    1GB RAM

    If MS came into this market with anything other than fourth place it would be shocking, this is their first slate/tablet.
    For me the price is high for any tablet, with the specs and in comparison with other devices, it is competitive and worth a look.
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  4. #4


    Posts : 534
    Windows 7, Windows 8 RP


    Some analyst this Shaw Wu character, why not compare 10" to 10" tablets price points, obviously a 7" tablet will be cheaper especialy when sold at cost. How about comparing the Surface RT without keyboard at $499 to the Asus Prime at $449-$499 without keyboard. Let's add a keyboard to the Android 10 tablet bring it to $699 for 32GB which is the price of the 64 GB Surface RT with keyboard. The 64GB Asus Prime with keyboard comes in at over $800!! Microsoft is marketing the Surface as a high quality tablet and it's priced competatively and cheaper (cheaper as in MORE for your money) than the iPad.

    No surprise though, typical FUD.
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  5. #5


    The thing is that the Surface "not the RT" is not really a tablet, it has closer to PC specs with the quad core, SSD, 4GB memory, plus with it's flip out keyboard and a touch screen that tilts up making it even more like a PC but with a much smaller foot print.

    Comparing the two is like comparing apples and oranges so why should the price be the same?
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  6. #6


    While the surface is less like a tablet and more like a PC, it's certainly a tablet style device. At the high end, sure the hardware is more advanced than the iPad...but the iPad has the status symbol intangible that's very hard to compete against.

    I too fear that the price is going to be too high for the Surface to really take off. Most people who are shopping for tablet devices are looking for an all purpose web consumption device. They want to watch videos, potentially read books, surf the web, check email and utilize social media. And many either want 1). status symbol of iPad 2). specific apps in the Apple Store or 3). lowest cost device to do the above tasks.

    I think enthusiasts will gravitate towards the more useful device...which would likely be the surface, but I think the average joes are going to shop more based on price. Thus, the less than $400 market space.

    I don't think many truly believe they can replace a desktop or laptop with a tablet. Those who think they can, have probably not tried...they have just seen what is popular in the market and tablets are #1 right now.
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  7. #7


    Posts : 5,707
    Windows 8.1 Pro


    I think it's amazing people find the price too high, tell that to the millions of people who bought an ipad these past few years.


    Putting that aside, for the same price, you have better hardware and more storage and better capabilities the ipad can't and won't match.

    Even still, if they priced it at 400, it would be Zune all over again. Even though the Zune HD player was a fantastic little device, it came too late and came as something that passed off as a cheap knockoff. But the Surface priced at a head on level with the ipad, it doesn't take too much to sway to a Surface. Better capabilities, better hardware, more storage. That is all.

    I also should say, it's like the media has wrote off the several tablet PCs already out there and seem to think the Surface is the ONLY Windows 8 tablet PC out there. Really right now?
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  8. #8


    Quote Originally Posted by Coke Robot View Post
    I think it's amazing people find the price too high, tell that to the millions of people who bought an ipad these past few years.
    iPad owners spend more on the "apple tax" to get the brand name status symbol. They know and realize this. They pay extra for the service they will receive from the Apple Store. They pay extra for the ability to keep consistency across their iPhones, MacBooks and iPad's. They pay extra because they have already bought into the Apple Store and can use previously purchased apps for their phones on their tablets.

    People pay more for MacBook Pros and Mac Book Air's simply because they are Apple products. Look at how they shop, they almost always compare the MacBook against the bargain priced PC and quite often these days make the Apple purchase as they now believe "it's worth it".

    Same thing goes for Beats by Dr. Dre headphones. People go from either their 1) Free craptastic earbuds or 2). Their $9 Sony flimsies, to $300-$500 headphones because they look cool, people wear them as a fashion trend and they seem them on TV and in movies. They almost NEVER consider the competition or can name any other reputable headphone manufacturer before they have made the decision to spend the extra on these popular Beats headphones. At the price point, they aren't high performing from an audio standpoint. Their bass is exaggerated. But as relatively uniformed consumers, and compared to their previous piece of crap headphones...they think the Beats are great.


    Quote Originally Posted by Coke Robot View Post
    Even still, if they priced it at 400, it would be Zune all over again. Even though the Zune HD player was a fantastic little device, it came too late
    Many MS products due come way too late. They had a winner with the Xbox. they had a loser with the Zune. Time will tell on the Surface.


    Quote Originally Posted by Coke Robot View Post
    I also should say, it's like the media has wrote off the several tablet PCs already out there and seem to think the Surface is the ONLY Windows 8 tablet PC out there. Really right now?
    It's the only one most people are even remotely aware of unless they are fanboys of Microsoft. I have a Blackberry fanatic friend who can tell you everything in the Blackberry pipeline....but nobody else knows about any of this stuff.
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  9. #9


    Quote Originally Posted by R0bR View Post
    Some analyst this Shaw Wu character, why not compare 10" to 10" tablets price points, obviously a 7" tablet will be cheaper especialy when sold at cost. How about comparing the Surface RT without keyboard at $499 to the Asus Prime at $449-$499 without keyboard. Let's add a keyboard to the Android 10 tablet bring it to $699 for 32GB which is the price of the 64 GB Surface RT with keyboard. The 64GB Asus Prime with keyboard comes in at over $800!! Microsoft is marketing the Surface as a high quality tablet and it's priced competatively and cheaper (cheaper as in MORE for your money) than the iPad.

    No surprise though, typical FUD.
    Very valid points you bring up. Let's compare apples with apples (no pun intended) and oranges with oranges. Bottom line, one gets more for their money with the Surface.

    Also, can we even put the iPad in the same hybrid class? No. It's a pad, not a hybrid.
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  10. #10


    Hafnarfjörður IS
    Posts : 4,376
    Linux Centos 7, W8.1, W7, W2K3 Server W10


    Quote Originally Posted by chev65 View Post
    The thing is that the Surface "not the RT" is not really a tablet, it has closer to PC specs with the quad core, SSD, 4GB memory, plus with it's flip out keyboard and a touch screen that tilts up making it even more like a PC but with a much smaller foot print.

    Comparing the two is like comparing apples and oranges so why should the price be the same?
    Hi there

    It might look like a PC and to all intents and purposes behave like a PC - however it's being marketed as a TABLET.

    Now we all know once you start talking about 700 - 800 USD you can buy TWO reasonably 'specced laptops for the same price.

    A tablet really implies a "lower end product" even if it has a faster CPU etc etc.

    I just can't see anybody paying this much for that type of tablet --except defectors from "The Fruit Company" who really want to run office apps on their tablet -- Ipads don't do this.

    The market is a harsh place --it will eventually decide the final price - whatever the initial marketing people feel the launch price should be.

    cheers
    jimbo
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Surface Doomed To Come In Fourth Place At Best
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