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Microsoft lowering prices for Surface RT not likely to hike sales

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Microsoft has lowered retail prices for the 10.6-inch Surface RT to US$349 for its 32GB version and US$449 for the 64GB one, but the price cut is not likely to be effective in pushing up sales because prices for Android tablets and Windows touch-screen notebooks have also dropped significantly, according to Taiwan-based supply chain makers.

Some market watchers believe Microsoft’s price cut is meant to accelerate inventory digestion of the Surface RT in preparation for the launch of its next-generation Surface tablets.

Meanwhile, Microsoft is also hoping the price cut can help boost sales as the company is currently facing great pressure from price competition, the market watchers analyzed.

Microsoft sold about 900,000 tablets in the first quarter, and sales are believed to have dropped sequentially in the second.

In addition to Android-based tablets, falling prices for touchscreen notebooks are also expected to impact demand for the Surface RT tablets in the third quarter.

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Source: Associated Press

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