Microsoft Shows Weakness With This Tablet’s Price Cut
Back-to-school specials are revenue boosters — sales aimed at cranking up volume before the holiday season kicks into effect. When a sales price becomes the starting point, that’s a bad sign for product performance. Following other tablet struggles, Microsoft (NASDAQ:MSFT) is facing that problem with its Surface Pro line and the special deals will become the permanent list price of this weak seller, according to Neowin.
As per Microsoft, the Surface Pro 64 GB model will start at $799 from now on, its “$100 off” sale price that was supposed to end August 29. The Surface Pro’s 128 GB version will also keep its sale price of $899 in all markets moving forward. After trying to get this tablet going, it appears Microsoft has another losing product on its hands.
The slump began with dismal Surface RT sales, forcing Microsoft to post a $900 million charge (loss) on its investment in the tablets through the last fiscal year, AllThingsD reported. Ongoing complaints about the battery life of the Surface Pro are hurting sales and, with the price cut permanent, profits will be affected on every product sold in the future. Microsoft framed the price cut’s permanence as a way of getting its happy consumers more of what they love.