Is $350 really the sweet spot for the Microsoft, Corp. (NASDAQ: MSFT) Surface with Windows RT? An interesting discourse on this question was published today on tech-oriented site Gotta Be Mobile, one which quoted a few market analysts in reference to what they think about Microsoft and its troubled line of Surface tablet computers, including the now-$349 Surface RT.
When Microsoft had reduced the entry-level price point of the Surface RT to $349 from $499, that had contributed to a loss of close to $1 billion, as seen on Microsoft’s most recent quarterly financial statistics. But that might be more of a non-issue, according to some financial and tech experts, who believe Microsoft may have learned from the mistakes of the Surface RT, such as failing to explain that Windows RT is a “lite” version of the Windows 8 OS (operating system) for ARM devices like the Surface RT tablet, and making other so-called “rookie mistakes” on the Surface tablets as it was Microsoft’s first attempt in the consumer electronics hardware market.
According to Michael Cherry, an analyst for Directions on Microsoft, a lot of money invested on the Surface tablets may have gone to “buying parts, buying time in a plant and building sub-components.” ZDNet backed up Mr. Cherry’s statements by saying that the Surface line’s premium build quality and the fact that some consumers may have had a lot of hands-on experience with the tablets could help the line’s prospects going forward.
In terms of Microsoft’s bottom line, Gotta Be Mobile writer Chuong Nguyen stated that the price cuts mentioned above “may have worked”, as the base Surface RT with 32 GB storage had recently sold out on Wal-Mart. Still, Mr. Nguyen opined that it may not be 100 percent clear yet whether the price cut was truly successful, as it is unknown how many Surface RT tablets were available for sale anyway.