http://www.tgdaily.com/mobility-feat...-199-price-tag
Quote:
But really, what choice does Microsoft have? The tablet space is currently dominated by Apple's iPad, with Android devices gobbling up the remainder of the market.
An aggressive pricing strategy designed to capture as much initial market share as possible will likely benefit Microsoft and its partners in the long run.
Remember, with the WinTel PC market stagnating, Redmond really can't afford to kick back, sell a few hundred thousand Windows 8 tablets at a $600-$800 price point and concede the market to Android and iOS. It's simply too late in the game for that sort of complacency.
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Is MS ready to concede the tablet market to Android and iOS? Or will MS fight?
MS lost out with smartphone. Is it willing to lose out on tablet? (especially now that PC sales are stagnating with the rise of tablets).
$199 might be a bit too low though. $249 might make more sense.
It probably cost $300 to make with MS taking a $50 loss.
MS lost $168 per XBOX sold ($4 billion in the first 5 years or so).