Surface at $199 – Believe it

Numerous reports have surfaced (pun not intended) indicating that the Windows RT model of Microsoft’s much anticipated Surface tablet would begin at just $199.

Where the new iPad begins at $499.99, this would certainly be a game changer. While hundreds, if not thousands, of bloggers have dismissed the reports, stating that this price point would simply be impossible and create huge losses for Microsoft, we should all be aware that Microsoft isn’t scared of losses. (Microsoft has continually sold the Xbox for an estimated loss of $126 per unit!)

Remember, this isn’t even about the Surface for Microsoft, and it never was. It’s always been about Windows 8 and competing with Apple’s OS. It would be great for Microsoft if they could get into the tablet game, but the Surface is merely a stage from which to promote Windows 8. What better way to get people familiarized with your new operating system than create your first ever own-brand tablet from which to promote it? Better yet, imagine selling that tablet for $200!

Take a look at Windows 8 and it only becomes more evident Microsoft is still focused on the OS market and not the tablet market. Sure with a great success they may maintain a share-hold in the tablet market, but this is all about the OS market and reasserting themselves over their California, Cupertino based competitor.

Let’s not forget this quote from Microsoft’s Panos Panay during the original unveil press conference for the Surface this past June: “This was built as a stage for Windows 8. It is important that we have hardware fade to the background so Windows 8 can come to the surface.” Panay only reaffirms that which we should already know: Microsoft makes operating systems.

While previous reports had placed pricing estimates for the Surface tablet as starting at $600, these reports were clearly based on a loose assumption that Microsoft would attempt to be comparable to the iPad. But at a starting price of $600, the cheapest Surface tablet would cost $100 more than the cheapest iPad – this certainly isn’t the way to get increased exposure for the new Windows 8 OS. Even the seemingly outrageous $200 price point may be more realistic. Sure Microsoft would take a loss but millions of consumers would undoubtedly flock to the store for these, many of which may even be iPad users. Could Microsoft be on a mission to convert Apple OS users to the Windows 8 OS?! Hmmm…

The fact of the matter is at $500+ the Surface won’t be able to maintain any share-hold in the tablet market AND Windows 8 won’t get the exposure and use Microsoft wants. Only the most avid and curious tablet users are going to rush out to blow that kind of cash on the lowest level model of the Surface. To top it off, Apple’s share of the tablet market is nearing an all-time high (70%) as of August 15^th at 64.4%.

With this news, Microsoft may have just realized that they’ll have to do something major to break into the tablet market and get users buzzing about Windows 8. A $199 Surface? Don’t count it out yet.

Post brought to you by Tom Grimes, content developer DutchCrafters.com AmishFurniture and avid tablet enthusiast.