Nearly every tablet not named “Kindle Fire” has had a rough time getting any significant market share next to the iPad. Microsoft, however, is betting big on Windows 8. The Kindle Fire has succeeded by undercutting the iPad’s price, but Microsoft will try to succeed by bringing a touch-friendly version of the world’s most famous desktop software to tablets. That doesn’t, however, mean that price won’t be important.
If a recent report is any indication, there may be some challenges involved in pricing Intel-based Windows 8 tablets to sell. They will reportedly retail for a minimum of $599: a full $100 more than the cheapest iPad.
It would be tempting to mock Microsoft and Intel for slapping ridiculous prices onto their unproven devices, but the companies are actually in a bit of a pickle. They could probably sell the “Wintel” tablets for cheaper — and gain market share — but that would likely lower the overall pricing in the PC market and hurt the companies’ overall margins.But the alternative, hocking tablets that cost more than the iPad, hardly sounds like a sound strategy. It brings back memories of the market debut of Android tablets, like the original Galaxy Tab and Xoom (both cost $700-800 off contract at launch). Windows 8 could have an appeal to tablet shoppers that Android doesn’t share — based on its prestige in the desktop space — but that’s far from being a sure thing.
Of course, that doesn’t mean that all Windows 8 tablets will be priced at $600 and up. AMD-based Windows tablets may be the big winners here, as their lower prices will give them a chance to gain greater adoption with both consumers and manufacturers.
This all, of course, hinges on the assumption that people will want Windows 8 tablets. As attractive as the previews of the platform have been, many Windows users are already in love with their iPads, and the similarly-designed Windows Phone 7 has yet to gain any significant market share in the smartphone market.
via DigiTimes
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