Microsoft Corp Offers $100 Markdown on Surface Pro Price Tag

$100 Markdown on Surface Pro Price TagMicrosoft Corp has lowered the current price tag of its Surface Pro by $100. The price slash came as the company gears up for the back-to-school season. It is another logical move to boost the attractiveness of the tablet PC among students and parents.

The offer is directly available from the Microsoft Store. The units still have the main features like the Intel processor and the full version of Windows 8. However, the price slash program only covers the 64GB and 128GB versions of the device. The models can now be purchased for just $799 and $899, respectively. This enticing offer would expire on August 29.

However, the markdown has its own set of limitations. The offer would not make Touch or Type cover free. Unlike Surface RT, discounted Surface Pro would also not come with free copy of the company’s Office Suite.

Lackluster sales

The price markdown came three weeks after the company lowered the price of its Surface RT by 30%. That move was logical as the tablet failed to meet target sales since its launch last October 2012.

Moreover, Microsoft has revealed that it has already generated sales of $853 from Surface tablets since its launch. That could have been a good start but the company also disclosed that the figure was still short of the $900 million it shouldered to cover the inventory adjustments for the devices.

On top of that, Microsoft also incurred a separate $898 million cost for marketing and advertising efforts to promote Surface and Windows 8. That clearly translated to actual loss since the new tablets were released in the market.

Comparison to leader

Microsoft disclosed its revenue from the under performing Surface tablets but it opted not to reveal the total number of units sold. But according to several analysts’ estimates, the company could have sold up to 1.5 million units of Surface tablets so far. Of those, about 1 million could be accounted for sales of the Surface RT version. That estimate was just about half of the target and projected sales of the company.

In comparison, Apple Inc’s iPad sold up to 14.6 million units in the second quarter alone. This may indicate that Microsoft’s Surface tablets may still not be the force to challenge the current market leader. Meanwhile, Acer’s own tablet PC was also discounted by up to $80 per unit in the market.

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About the author

Drew is a regular contributor covering trending topics.