Tuesday, July 16, 2013

MSFT Gets Desperate


MSFT is starting to get desperate. Sales of the Surface tablets remain sluggish so they’ve been forced to slash the price for the device. No matter how much they cut the price it still won’t be as good as rival products with Android OS or even iOS.

Here’s more on the story: Call it a back-to-school sale. Call it excess inventory clearance. Whatever you call it, Microsoft is stepping up its fire sale on its ARM-based Surface RT tablet/PC hybrids.

On July 14, as rumored last week, Microsoft and partners chopped the 32 GB Surface RT base price by to $349 (from $499) and the 64 GB model to $449 (from its original $599), at the Microsoft Store, Staples and Best Buy in the U.S.

That deal follows on the heels of steep Surface RT (and Surface Pro) discounting at some recent Microsoft conferences, including TechEd North America, TechEd Europe and the Worldwide Partner Conference (WPC). At WPC last week in Houston, many of the 15,000 in attendance stood in lines which occasionally lasted two hours to get a Surface RT device for $99 and a Surface Pro device for $399. Microsoft also launched a Surface RT discount for schools and universities (not for individual students) earlier this summer.

Microsoft execs have repeatedly declined to say how many Surface RTs the company had built and/or how many the company has sold since the devices were launched in October 2012. Some Microsoft watchers estimated the company had far too many Surface RTs produced, severely overestimating demand for the device which cannot run existing Windows apps.

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