Rumored US$199 price for Windows RT Surface expected to squeeze PC vendors out of the market

Monica Chen, Taipei; Joseph Tsai, 16 August 2012

As Microsoft is reportedly considering selling its Windows RT-based Surface tablet PC at US$199, sources from notebook players are concerned that if the rumor is true, notebook brand vendors will be out of the game unless Microsoft only sells the Surface in the US.

Currently, most brand vendors are turning their focuses to Windows 8 and Intel-based tablet PC models, targeting the enterprise market with a price level above US$699.

The sources pointed out that Microsoft is fully aware that its actions have greatly offended its notebook clients, and therefore is trying to achieve success and acquire at least 30% share in the tablet PC market. A price of US$199 is expected to allow the company to achieve its needed goal.

However, if the rumored price is true, Microsoft's Windows RT partners such as Asustek Computer, Lenovo, Samsung Electronics and Dell may all halt their development, leaving Microsoft to play in the Windows RT market by itself, the sources noted.

The sources also pointed out that Google's Nexus 7 is seriously hurting sales of all other 7-inch tablet PCs and is also affecting demand for 10-inch models, but since Nexus 7 has not yet expanded into other important markets such as China, notebook players are still able to have room to survive. If Surface only sells in the US, it would minimize the device's impact on other vendors' machines, allowing others to launch their Windows RT products.