Which Recent Price Cut Makes More Sense?

By Matt Thalman – Jul 20, 2013 at 4:00PM

NASDAQ: MSFT

Microsoft

Market Cap

$2,979B

Today's Change

(1.52%) $6.10

Current Price

$407.06

Price as of April 23, 2024, 10:50 a.m. ET

As mobile device sales slow, is a price cut the only option, and does it always make sense?

In the following video, Fool contributor Matt Thalman discusses which recent price cut makes more sense: BlackBerry's (BB 1.43%) recent move to lower the Z10's cost or Microsoft's (MSFT 1.52%) move to reduce the price tag on the Surface tablet.

In both cases, the company has put a lot of time and money into developing the device and needs it to produce big sales numbers. Cutting the price of these units just a few months after they hit the market may increase unit sales counts, but it's going to hammer margins and profits.

Check out the video to see which company Matt says made the better move.

Fool contributor Matt Thalman owns shares of Microsoft. Check back Monday through Friday as Matt explains what caused the Dow's winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter: @mthalman5513.

The Motley Fool owns shares of Microsoft. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.