Microsoft's Surface tablet reported to sell for a low $199

14.08.2012

A $199 price for Surface RT "seems pretty unlikely," given the cost of materials, said IDC analyst Tom Mainelli. "We're hearing the price is more likely in the $599 range," he added.

Mainelli agreed with the consensus of analysts that a $199 price would "dramatically" help Microsoft gain traction in a crowded tablet market.

However, he noted that such a low price would put Microsoft's OEM (original equipment manufacturer) partners "in a very difficult position, as there's no way [they] could hit that price point." Those partners -- Asus, , Lenovo and Samsung -- were on Monday as making Windows RT tablets. Toshiba and Acer had earlier announced Windows RT plans.

Those hardware makers have to pay Microsoft for the operating system and would not have the same ability to make up the loss with the sales of apps, as Microsoft would, Mainelli added.

Acer, which has said it will in early 2013, has been especially concerned about competing against Microsoft on a tablet. Microsoft confirmed in late July that it the hardware makers that are its partners.