Poor sales forces Microsoft to cut tablet price

by CXOtoday News Desk    Jul 16, 2013


While the tablet market continues to surge and the PC market taking a downturn, however, Microsoft has been hard hit with its poor sales. Reuters reported that software giant, which was very eager jump into the tablet bandwagon with the release of its premium-priced Surface Tablet, has been forced to slash the price of its entry-level Surface RT tablet by 30 percent because of poor sales indicators.

It was reported that the Surface RT tablet was being sold for as low as $349 for US customers on the Microsoft website on Monday, down from the introductory price last year of $499. The move comes amid a price war for tablets and a flood of new devices on the market.

Reuters also reported that Amazon has slashed prices of its Kindle HD tablets to as low as $169 in the US and 139 pounds in Britain, while Barnes & Noble has cut the price of its Nook to as low as $129, and has announced plans to outsource production of its tablets.

Microsoft introduced its Surface last year at a premium price, promoting the device as a substitute for a personal computer with an attachable keyboard.

Research firm IDC estimated the company sold just 900,000 units in the first quarter, in a global market of some 49 million. Microsoft previously cut the price of the Surface as low as $199 for education buyers.