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microsoft surface

microsoft surface price

With its Windows business facing increasing competition thanks to a dizzying array of consumer devices like Apple's iPhone and tablet computers running on Google's Android operating system, Microsoft is placing its bets on its own hardware and software with the "Surface".

How can the software giant distinguish its yet-to-be-released tablet computer? Some analysts believe price could be the difference.

"The company did not disclose any pricing details, but said that pricing will be competitive with a comparable ARM tablet and Intel Ultrabook," Deutsche Bank Securities analysts said in a research note last week. "However, we believe that with its own device and with control on pricing, MSFT will be able to better use price as a competitive differentiator."

Nonetheless, if a recent report proves to be accurate, Microsoft's tablet computer -- particularly its higher-end version -- probably won't appeal to frugal consumers.

A "source close to Microsoft" told The Next Web that one version -- running an ARM processor and featuring Windows RT --- would cost $599 while a higher-end Surface would be priced at $999. Perhaps, Microsoft will find the price tag for its higher-end tablet is too steep for consumers; sources toldDigiTimes that the Windows 8 Pro-based Surface with Ivy Bridge processor would cost at least $799.

Microsoft, though, may not be worried about customers being able to afford the higher price if it's zeroing in on businesses.

"The obvious “low hanging" market opportunity for Microsoft’s Surface tablets is with business buyers that have an installed base of Windows PCs," ABI Research commented last week.

But the global research firm expressed skepticism that Microsoft's Surface would enjoy robust demand. "So far, businesses have been opposed to buying incremental computing assets for users due to the support costs," ABI Research said.

In the consumer market, the Surface may appeal to people who are used to Microsoft's Windows operating system through their personal computers. But will it create the same impression on the masses as Apple's iPad?

"If Apple's new iPad is the ... sports car of the computing world, a product that delivers speed in style but only on smooth roads, Microsoft's surface aims to be a well designed, but traditional sports utility vehicle that can haul boats and climb a hill of rocks," Yankee Group Research VP Carl Howe wrote. "It remains to be seen which consumers will choose, but at present, we doubt that consumers will trade sports cars for trucks."