Will You Buy a $349 Microsoft Surface?

The following video is from this week's installment of The Motley Fool's Weekly Tech Review, in which Alison Southwick sits down with analysts Eric Bleeker and Lyons George to look at the biggest stories driving the tech sector this week.

In the segment below, Eric and Lyons look at Microsoft's (NASDAQ: MSFT  ) recent price cut, which moved the starting Surface price from $499 to $349. Microsoft initially priced the Surface in a way that its hardware partners could make competing Windows 8 tablet designs based on Windows RT and still make a profit on them. 

However, at $349, the company now risks pricing the tablet low enough that hardware partners such as Asus and Hewlett-Packard have little incentive developing Windows RT tablets when a space like ultrabooks, where PCs are selling at much higher prices, affords more profit potential. Is Microsoft's price cut a last gasp to save Windows RT by taking a more aggressive stance in pushing volume shipments of the Surface?

To see Eric and Lyons' full thoughts, watch the video. 

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Read/Post Comments (10) | Recommend This Article (1)

Comments from our Foolish Readers

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  • Report this Comment On July 21, 2013, at 7:21 PM, crainer1207 wrote:

    I'll buy one @ $199

  • Report this Comment On July 21, 2013, at 8:45 PM, josh995 wrote:

    I had a Surface for a little less than 2 weeks. Returned it. No, I wouldn't buy one at $350. Maybe if they do what HP did with their tablet and finally realize that people don't want a Surface and have a $99 fire sale I might - MIGHT - buy one.

  • Report this Comment On July 21, 2013, at 11:16 PM, Secs27 wrote:

    The Surface Pro is one of the finest tablets I have ever used. It is built using very high end materials unlike the junk google,Manson and Samsung piers out.

    The build quality of the Surface Pro is on par, if not batter than the iPad. The surface is very, very fast fluid and rock steady reliable.

    It has the power and ports of a full blown computer combined with the portability and beauty of an iPad.

    I used to travel with my top and iPad. Now, I just have to take the Surface Pro.

    The screen is also gorgeous and it is a pleasure to watch a movie on it.

    The Surface Pro is a revolutionary device and is designed or the higher end consumer who wants the power and productivity of a computer in a beautiful tablet form. After using the Pro, since it was released, I am very impressed and have not one complaint. As such we recently purchased a open for our business.

  • Report this Comment On July 21, 2013, at 11:46 PM, CROIC wrote:

    A Surface RT isn't a "real" Surface to consumers, thus the need to slash prices and take huge writedowns. Not that Surface Pro is doing much better.

  • Report this Comment On July 22, 2013, at 12:25 AM, rmm200 wrote:

    Secs27 - did you type that comment on your Surface Pro?

  • Report this Comment On July 22, 2013, at 1:20 AM, samabm007 wrote:

    Secs27 which group do you work for at Microsoft? Nice try making us think its a great product....the product is junk basically. I used it for 3 weeks and returned it.

    Windows 8 and Surface has an identity crisis. It can't decide if it wants to be a laptop, or a tablet.

    You can't even set it on a lap and use it like a laptop. You have to find a table to use it or an airplane tray.

    Try clicking on a picture or a JPG file and you will launch some ugly app for pictures. You can't print it and you can't do anything except view the picture. Really? and you call this a great experience?

    I bought an iPad and a Macbook Air and an iPhone and I use iWork for spreadsheet, word processing and presentation. I dumped all of Microsoft from my life and life is so simple !

  • Report this Comment On July 22, 2013, at 5:06 AM, symbolset wrote:

    They have 6 million units of inherently perishable dead stock. Why should I buy it at $349 when obviously I can get it for less than $100 before Christmas? Why would I want to be one of the whiners who overpaid?

  • Report this Comment On July 22, 2013, at 9:10 AM, FuzzySquirrel wrote:

    samabm007,why does any positive feedback about Microsoft automatically mean the person works for MSFT, yet you can tout your love for no fewer than 3 Apple products but we’re not supposed to think you work for Apple? What a hypocrite.

    Not sure I understand the comment about not being able to set the device on your lap….can you do that with an iPad? I have a Surface and actually really like it. I have used it with and without the keyboard and have been very satisfied with both experiences. When I do use the keyboard I can flip it under the kickstand and use it as its own little table – works great. As for using iWork, etc. I just don’t buy it. I work in a relatively large company and the APPL and MSFT products still don’t play nice. On the Surface I can run all my Office Apps without any nuanced maneuvering. iPad folks struggle as I easily open and alter documents and spreadsheets.

    I know it’s not chic to like MSFT, especially on the MF site, but everyone I know with a Surface (and it’s a quite a few as our Enterprise is now testing them) really likes it. Also, Windows 8 is not the nightmare it’s been made out to be, in fact the people I know who use it seem to be pleasantly surprised at how easy they are able to adapt.

    No need to post a response to this as I’m sure it will just be some rude and inaccurate accusations about me working for MSFT, which I don’t and never have. I’ve simply stated some facts based on my experiences – you don’t have to like them, but they are true. And for the record, this was written on my Surface.

  • Report this Comment On July 22, 2013, at 9:20 AM, AcuraT wrote:

    At this point, you have to expect this is going along the lines of the ill-fated HP tablet that was DOA. There are not many apps (compared to the competition) and the full Windows 8 desktop is more powerful. This fills a need no one needs, plain and simple.

  • Report this Comment On July 22, 2013, at 3:49 PM, rbtibbitts wrote:

    I won't purchase the Surface RT but I'm biting at the bit for Surface v. 2.0. Once they improve the battery life and hard drive space I'm 100% all in.

    I get tired of all of the prognostications of "is this the beginning of the end" for Microsoft. Has anyone looked at the stock prices of MSFT compared to AAPL? Over the past year AAPL has declined in value by 30% while during the same time period MSFT has increased by 7%. And how about the vulnerability of AAPL. Their developer site has been down for 5 consecutive days due to a security attack and it seems to me there's been an increase of security flaws in iOS that are being exploited with greater frequency.

    Enough with the doom and gloom of Microsoft. By the way my family owns 2 Windows laptops, 3 iOS devices and a MacBook Pro.

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