In order to compete with Apple’s iPad, Microsoft may have to price its Surface tablet models so low that it will alienate its longstanding PC partners, according to a new analysis.
The analysis indicates that for MS new tablet, the Surface, to gain market share it will have to severely undercut the price of an iPad. MS can probably d this – its sold the Xbox at a loss – but this will make it then impossible for the OEMs to have any hope. Their market will be destroyed. Plus they have to pay a licensing fee to MS for the OS – which has been suggested to be about $80.
So why would they even try and make a Windows tablet? They cannot win any market share if MS can sell ones cheaper. They may just decide to make Android ones instead.