) slashed prices of its Surface 2 tablet lineup by $100,
representing a 22% cut irrespective of the model. The entry-level
second-generation Windows 8.1 RT device will now cost as little as
$349 and the new prices will be effective from Aug 24 to Sep 27 in
With the new price cut, the Surface 2 32GB wifi, 64GB wifi and 64GB
LTE editions will cost $349, $449 and $579, respectively. With the
new price, the 32 GB Surface 2 will be cheaper than Apple's (
) 16GB iPad mini, which costs $399. However, it will not include a
keyboard attachment that is generally a compulsory peripheral for
any Surface tablet.
The Microsoft Surface 2 runs on NVIDIA (
) Tegra 4 and features a 10.6 inch display with 1920 x 1080 pixel
resolution. The device has been unable to generate user interest
and has seen tepid sales since its debut in October last year.
It is unclear whether Microsoft wants to clear the inventory before
it discontinues the tablet to focus on its successor Surface Pro 3
or whether it is trying to scrap a product which is incapable of
delivering on its goals.
Surface is a series of tablets produced by Microsoft in a bid to
amalgamate its Windows OS with its own hardware. It has launched
five Surface devices to date: the ARM-based Surface RT that was
upgraded to Surface 2, and the Intel (
)-based Surface Pro that was refreshed twice to Surface Pro 2 and
Surface Pro 3. Microsoft unveiled Surface Pro 3, the
thinnest, lightest and largest laptop-tablet hybrid product in the
series in May.
However, these devices have generated lower revenues than the
amount spent on marketing them. Even though the company is yet to
register profits from the Surface devices, it is leaving no stone
unturned to capture the imagination of customers. Microsoft is also
offering its services and technology across a larger number of
devices, which could help it protect its still-leading share of key
Currently, Microsoft carries a Zacks Rank #3 (Hold).
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