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Microsoft reportedly doesn’t care if its $199 Surface tablet pushes partners out of the market

Microsoft (MSFT) is reportedly well aware that pricing its entry-level Windows RT tablet at $199 will push its vendor partners out of the market, but it might launch the device at that remarkably low price point anyway. Citing multiple unnamed sources from notebook vendors, Digitimes on Thursday reported that Microsoft’s hardware partners are very worried about the possibility of a $199 Surface tablet. Unless Microsoft only sells the device in the United States, partners including ASUS (2357), Lenovo (0992), Samsung (005930) and Dell (DELL) may stop developing Windows RT tablets since they will not be able to compete at that price.

According to the report, Microsoft knows very well that it is angering its partners but it doesn’t seem to care. “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,” Digitimes’s Monica Chen wrote. “A price of US$199 is expected to allow the company to achieve its needed goal.”

Microsoft will release its Windows RT and Windows 8 Surface tablets on October 26th, the same day Windows 8 desktops, laptops and tablets from Microsoft’s vendor partners are expected to begin rolling out next-generation devices.

Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.