Microsoft Slashes Cost of Surface Pro: A Sign of Failure?
Just a week after it slashed the price of its failed Surface RT tablets by $150, Microsoft has taken a similar drastic measure with the price of its premium Surface Pro, cutting the cost of the device by $100. As of today, the 64GB and 128GB versions of the Pro will be priced at $799 and $899 each.
However, Microsoft stated that the measure is merely a special “offer”, that will only be valid until August 29, after which the devices will revert to their previous price. Also, the company pointed out that the offer is “subject to change” at any moment.
The news will come across as yet another indication of Microsoft’s failure when it comes to Windows RT and Windows 8, but the company nevertheless put on a brave face, telling The Verge that it’s “seeing great worldwide success with Surface RT pricing and keyboard-cover promotions over the past several months and [is] proud to offer Surface Pro at more affordable prices starting today.” Of course, it didn’t mention any specific sales figures, but one can assume that the company’s strategy is to test the waters, without making any long term commitments to reduced pricing.
Microsoft’s discount pricing will be good news for those who’ve been mulling the idea of buying a Surface Pro, but it’s not so good for the company itself. Just last month, it announced a $900 million write-down on excess Surface tablets that were unsold in its fiscal fourth quarter. Days later the news was even worse, when it was revealed that the firm’s inventory adjustment was greater than the total of all Surface sales to date – so far, revenues from its devices have totaled just $853 million.
It’s clear enough that the Surface has been a bit of disaster for Microsoft, but interestingly enough it doesn’t look ready to throw in the towel just yet. The company has recently made noises about a possible refreshment for the Surface Pro, integrating it with Intel’s latest Haswell processor. Meanwhile, Microsoft is also believed to have been testing out Qualcomm’s Snapdragon 800 processor on Surface tablets, as well as likely accessories such as a battery-powered keyboard cover that should boost the device’s appeal.
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