With Microsoft releasing Windows 8 and its new Surface tablet at Midnight Oct. 26 -- just days after Apple is expected to debut its iPad Mini, and Google likely unveils its 32GB Nexus 7 tablet -- price will certainly be one of the deciding factors in the tablet retail war. While many expected the Surface to retail for $300 to undercut competitors, a listing on the Microsoft store earlier this morning indicated the tablet will begin at $500 for a 32GB model and will be available for pre-order today, according to CNET.
The listing has since been pulled, but this almost certainly confirms recent pricing rumors we've heard from numerous sources. It's not the extreme low price point some had hoped for, but it's still a very competitive number for Microsoft to work with, and a powerful weapon in the battle with Apple.
The $500 starting price tag puts the entry-level Surface at $100 cheaper than Apple's retina display iPad. Of course, the devices will cost the same when you factor in the keyboard cover. And while Apple hasn't commented on the cost of its widely rumored iPad Mini, Apple could still surprise everyone with a price even lower than Microsoft when it likely releases the device next week.
How to Pre-Order Windows 8
The 64GB model of Microsoft's Surface will cost $600, or $700 with the keyboard. There's no word yet on the more PC-like Windows Surface Pro, which is expected to be a few months behind RT, possibly released in early 2013.
Until this accidental leak, Microsoft had said very little of its device regarding price.
This is the same cost that was suggested Oct. 10 by Sameer Singh, an analyst at with Finvista Advisors, a mergers and acquisitions consulting group. Singh posited that the cost of the RT version would be between $400-$500, excluding the smart cover/keyboard. Considering his accurate prediction, that might lend more weight to his other claim that the Pro, out next year, should be priced between $799-$899, also excluding the smart cover/keyboard.
Singh was tired of waiting on Microsoft to release official numbers and has postulated his own estimate, based on former bill of materials calculations for devices like Amazon's Kindle Fire, Nexus 7, and Apple's iPad, then added a 25 percent to 30 percent markup to arrive at the $399-499 price range for the Surface RT.
For the RT version of the Surface, Singh's report lined up all of the components, including the display ($66.95), touch screen ($43.71), processor ($21), camera ($4.10), and battery ($25.74), for a total of $298.82. Add a $10 manufacturing cost, which bumps the direct costs to $308.82.
"Microsoft would be under considerable pressure to ensure that the Surface is priced in the same ballpark as tablets from OEM partners," Singh said. "Unfortunately, OEMs are also at a cost disadvantage," he said, since the companies need to pay Microsoft a $50-$65 licensing fee per Windows RT device.
"OEMs could cut some of the costs mentioned in the BOM above to boost margins (for example, they could use a cheaper casing), but Microsoft's hardware requirements could make steep cuts a challenge," he wrote. "Including the license fee, I expect the BOM of most Windows RT tablets to fall within the $300-$350 range."
The Pro version will likely retail for a much higher price, $799-$899, Singh said, with a similar gross margin of 25 to 30 percent. Based on the RT costs, the analyst estimated another $321.35 in bill of material components for the Surface Pro. The primary reason for the price increase is the $204 Intel Core i5 processor.
Microsoft Surface tablet features
The RT sports an HD screen, which various sources have reported is anywhere between 1280 x 800 and 1366x768, while the PRO has a 10.6-inch Clear type Full HD (1920 x 1080) screen with 16:9 widescreen.
That means they are among the biggest tablets in the market. If you are not satisfied with the typical 10.1-inch tablet, you can go for the Surface tablet. Along with the touch keyboards with the device, you can turn the machine to a small notebook.
The Surface tablet comes with five Touch Covers. Different from typical keyboards, the Surface keypads provide a smoother typing experience thanks to their touch-based surface.
The Surface tablets mount both front and rear cameras. The front camera, named life cam by Microsoft, makes the tablet ideal for video chatting through Skype or other services. Using the rear camera, you can capture images and video clips.
Microsoft puts forward better memory options with the Surface tablets. The device comes in 32GB, 64GB and 128GB options. The 128GB is available only with Surface Pro. Further, you can expand the memory using external memory sticks thanks to microSD card slot. That is, you can store enough data including music, software items and video in external clips.
The 3mm Touch Cover can be connected to your Surface tablet with a single magnetic click, so, now you can type text and send messages quite easily.
The Surface's tablet housing features a revolutionary kickstand. Along with fully functioning keyboard and track-pad, the integrated kickstand helps you place the gadget in both portrait or landscape modes.
According to Bloomberg, Surface will only be able to go online using a short-range Wi-Fi connection. This is a stark contrast to Apple's iPad 3, which has a 3G option, and a faster LTE connection.