Microsoft cuts price of Surface Pro by $100 for "limited time"

Last month, Microsoft cut the price of all of its Surface RT tablet models permanently by $150. Today, the Surface Pro, which launched in February over three months after the Surface RT, has also been reduced in price, but this deal is apparently only for a "limited time".

The Microsoft Store website is now showing that the 64 GB version of the Surface Pro is being sold for $799, a $100 decrease. The same price cut has also been given to the 128 GB version, and it is now being sold for $899. Other retailers that sell the Surface Pro in the US, such as Best Buy and Staples, have followed suit and cut the price of the Surface Pro by the same amount.

In July, Microsoft announced it took a one time charge of $900 million in its last quarter due to the permanent price cuts for the Surface RT models. There's no word if the company plans to take another one time charge for this temporary price cut on the Surface Pro. We have emailed Microsoft for clarification and also have inquired on when this "limited time" sale for the Windows 8 tablet will end.

Update: Microsoft sent over a note that the price cut will continue until August 29th.

Source: Microsoft Store, Best Buy and Staples

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Overpriced, with worse specs, and far worse software choice? Not to mention the hideous and unfunctional metro UI. No wonder it's selling so poorly.

Worse software choice? Are you just talking about the OS? Software isn't a problem since its x86.

I think it has more to do with the poor store design and the lack of enough compelling apps. That seems to be changing and 8.1 greatly improves the store, so we will see if 2nd gen windows tablets move ahead.

You obviously hate everything metro, but to me the ui looks fine and it actually has good functionality, it just needs more. It needs more to be a proper and powerful tablet interface. 8.1 certainly improves the situation, but MS has to stay aggressive with updates.

The desktop side of 8 is fine, so MS hasn't failed all the way around imo.

The metro side is clearly a work in progress. The desktop is a mature platform, so there isn't much to change there to keep it in good shape.

As far as wanting a windows tablet, I think that 8.1 will help the experience greatly on tablets. Simply fixing the app store will be huge for tablet usability. A better store should encourage better apps as well.

trooper11 said,
The desktop side of 8 is fine, so MS hasn't failed all the way around imo.

The metro side is clearly a work in progress. The desktop is a mature platform, so there isn't much to change there to keep it in good shape.

As far as wanting a windows tablet, I think that 8.1 will help the experience greatly on tablets. Simply fixing the app store will be huge for tablet usability. A better store should encourage better apps as well.

MS gimped "the desktop" with Win 8, it's not doing fine.

How is it gimped? I've been using it just fine since launch.

The only pieces of Metro I ever see is the start screen at start or to do a search and the charms bar for shutdown/restart. Neither of those things gimp the desktop itself.

I haven't run into any desktop features that were removed and hurt my productivity/usage. In fact, they improved the desktop side in several ways that I have discovered while using it.

8.1 takes that further since I can have it boot straight to desktop and disable the hot corners. It allows you to change the start screen from the tiles to an app list with sorting options like most recently used and applying your desktop wallpaper to metro's background.

I can understand not liking metro, there are fair reasons to not like it, but I don't understand the desktop dislike.

The main problem with the surface is that the vast majority of Windows 8 apps are crap. Desktop apps are not optimized for touch screens so essentially you will have to use it as a laptop and with the keyboard it isn't cheap.

Deihmos said,
The main problem with the surface is that the vast majority of Windows 8 apps are crap. Desktop apps are not optimized for touch screens so essentially you will have to use it as a laptop and with the keyboard it isn't cheap.
it sound like you never used surface before. In my opinion its the best tablet out there.

But, but the surface has USB ports. It should sell like hotcakes. Or is that the next version with more USB ports? Lol

Like Flow Rider says, keep it Low. Nobody in their right mind is gonna pay nearly a thousand dollars for a 10 inch screen. Even if its touch optimized. Get real Microsoft.

Realistic prices for your $900 million disaster:
Free - give it away to schools and colleges
$100 - Surface RT
$200 - Surface Pro

That is what its really worth.

Mr. Dee said,
Like Flow Rider says, keep it Low. Nobody in their right mind is gonna pay nearly a thousand dollars for a 10 inch screen. Even if its touch optimized. Get real Microsoft.

Realistic prices for your $900 million disaster:
Free - give it away to schools and colleges
$100 - Surface RT
$200 - Surface Pro

That is what its really worth.

$100 for an iPad competitor, and $200 for a business grade tablet? Are you nuts?

Dot Matrix said,

$100 for an iPad competitor, and $200 for a business grade tablet? Are you nuts?

Lets see, 14 million iPads, 1.7 million Surfaces. Surface Pro cost most than the iPad and not selling well. Surface RT cost less and its not selling well. Looks like the company behind the device is nuts.

How does that equate to $100 and $200 pricing? I'm not sure MS could afford the losses they would take.

When they take losses on the Xbox, its recouped thanks to a guaranteed cut of game sales. There is no such guarantee with a pc or tablet. Investors would go nuts if they sold tablet hardware at a loss like that.

I think the question should be, how cheaply made and how low performance will you or other tablet shoppers accept at $100 or $200? That pricing also means ARM, not Intel. Your not fitting an i3 or i5 into that price.

I am going to take a moment to provide Neowin with some advice. I got a warning that I personally attacked someone because of the use of the word 'stupid'. I notice over the past few years, Neowin is moving (or is trying to at least) in the direction of 'unprofessional journalism to what seems like professional journalism'. If I can't call someones views stupidity, then you have a long way to go before reaching the standards of a CNET, ZDNET, Arstechnica and many other mainstream sites. You can have objective commentary that is a bit terse without having to issue a warning. I hope the leadership of such a site such as this can take that into account. Considering that I have used way worst words against others on aforementioned sites, maybe Neowin should reconsider and put some philosophy into what it considers a personal attack.

I got a warning for saying "retarded practices" -- I wasn't even attacking SOMEONE, I was attacking a COMPANY. I have a feeling that Neowin has some MS employees on their staff...

Ah ok, I thought you were trying to be constructive and offer a legitimate plan MS could follow. You were just trying to point out failure. Got it.

I always saw the Surface Pro as a bit of a ****** child that didn't really know where it was meant to be. Was it a tablet or an ultrabook? You can get a better ultrabook from Dell, Samsung, Sony or Lenovo for the same price as the SPro in the UK so if the SPro wants to be an ultrabook it has a lot of very tough competition (look at the Sony Vaio Pro for example!).

If it wants to be a tablet then it is priced way too high and does much more than what people really want/need from their tablets. This is obvious in that you can do office work on an iPad and Android tablet with Pages, etc. for the iPad and many office apps available for Android. Hardly anyone actually wants to use a tablet for that kind of work though except in special situations. Tablets are mostly for consumtion of data and not creating it.

Also with Windows 8 hitting a pretty rough start probably didn't help either. It is a shame as I quite like the Surface (both RT and Pro) but neither could I use as my daily driver for either a tablet or an ultrabook replacement sadly.

I thought Microsoft might have treated this a bit like they did the Xbox and sell the Surface at a loss in order to break into the market. Kind of odd that they didn't when you consider they could take the hit if it gets them back in the game of mobile computing. It took nearly a decade but they managed to get there with the Xbox so they could have followed the same business model for Surface. Oh well.

Even with $100 off, I'm not sure MS has what it takes to compete with Android and iOS in the tablet market. I've tried them in Best Buy and they are nice but I'd take my iPad or Nexus tablets over it any day.

Major_Plonquer said,
You can't write on an iPad or Android. They're not even tablets. They're Readers.

On what planet is an iPad an Android device not a tablet? Are you talking about writing with a stylus? Yes you can. I'm not saying the surface isn't a nice device, just that it probably can't compete with Android and iOS at that price point and also the miniscule amount of touch apps compared to iOS and Android

Yeah I buy a Surface Pro at a reduced price, which is good, but then later this year Surface Pro 2 comes out with better features.

No thanks, I'll wait! :-)

Definitely no sense getting one for me, with the refresh bringing much better battery life

most likely this is the reason for the price drop. and i would expect a further price drops if they cannot get rid of the inventory fast enough.

I was playing with the Surface Pro yesterday (including the better keyboard and stylus) and based on the overall experience with the OS, I'd say $699 for the 64GB version and $799 for the 128GB version is about the sweet spot for this product. If it was thinner/lighter and had a longer battery life then the current $799/$899 price would have been justified. I'm still not too happy with Windows 8 either, but at least on the Sufrace Pro it makes sense ... on the Surface RT it creates a very confusing product.

The limited time in this instance is until they slash the price again and agin until they reach true firesale values.

Needs to be reduced even more. Nobody is buying into Windows tablets, the three last companies I contracted at all had ipads. Geez, I do like Windows tablets personally but I think Microsoft needs to pull something out the bag to get people interested.

Main problem with the Surface Pro is that i5 is too big a battery drain and it runs hot (for a tablet). Hopefully the Surface Pro 2 will address those issues.

Still, a $100 drop won't change anything

This is not limited time people. More cuts will be following soon to reach $99 price point for MS to get rid of unsold inventories. It's such a flop product with flawed strategy from MS part. It is another Zune.

But Surface *has* flopped as a product... and Microsoft's strategy has failed. I wouldn't call it another Zune quite yet though.

The price reduction is reflecting the limited utility of the Surface family. The huge gap between the hyperbole and reality has become evident, so pricing adjustments need to follow.

I doubt they made as many Surface Pros as they did Surface RT devices, this price cut being for a limited time is probably then seeing they have a limited supply left and decided to cut the price now towards the end.

call me crazy, but I actually like the surface RT more than the pro. I'm after the price and battery life when I look at this form factor. Performance......not so much. Could be just me.

Despite what many claim, this IS a notebook. They are hiding behind the tablet name. It has the same size as a notebook, it uses a fan to cool a hot cpu like a notebook, the battery life is short like a notebook. That IS a notebook.

It is way overpriced also.

Actually it's a Tablet PC. The Slate design has been promoted by Microsoft ever since the original "Tablet PC"-campaign…

I own a Surface Pro and it is my primary desktop at work and home now. With 8.1 it flies. I don't think the Surface Pro is as overpriced as many say, but what is overpriced are the keyboard covers. I think they should be $50 and one should come with every Surface - at the same price point. Basically at current Surface pricing you are getting a laptop without a keyboard. When you add the keyboard, it is a bit pricey compared to traditional laptops.

My concern is that MS will drop the quality or features from the Surface Pro 2. I don't want to loose the stylus, love it for taking notes in OneNote, and I love the hardware design.

I do look forward to haswell and longer battery life. I also hope for a proper docking solution that doesn't rely on DisplayLink. My results with that technology has been mixed.

tboggs13 said,
I own a Surface Pro and it is my primary desktop at work and home now. With 8.1 it flies. I don't think the Surface Pro is as overpriced as many say, but what is overpriced are the keyboard covers. I think they should be $50 and one should come with every Surface - at the same price point. Basically at current Surface pricing you are getting a laptop without a keyboard. When you add the keyboard, it is a bit pricey compared to traditional laptops.

My concern is that MS will drop the quality or features from the Surface Pro 2. I don't want to loose the stylus, love it for taking notes in OneNote, and I love the hardware design.

I do look forward to haswell and longer battery life. I also hope for a proper docking solution that doesn't rely on DisplayLink. My results with that technology has been mixed.

I should have mentioned that too. I thought Microsoft was batsh!t crazy for pricing the keyboard covers the way they did. That personally rubbed me the wrong way.

All good points here, i feel much the same way you do.

Whatever the price, needs a Haswell update. 5 hours battery life tethers you to a cable which defeats the purpose of the form factor.

Personally, a laptablet-hybrid of the Surface Pro kind is not really what I want, but at this price it seems like a pretty good deal for anyone interested in such a device.

I don't feel the Surface Pro is overpriced at all. I may be a little biased (I own one), but the hardware is remarkable and Windows 8 (and 8.1) runs great on it. It's my mobile power horse, and battery life really isn't a problem. There really aren't well-made Core i5 smaller laptops that compete well (my opinion of course) with it's current price.

I have found that a lot of people saying the price needs to be reduced are basically saying that Microsoft should sell their product like it was a Dell or HP systems. Good products, but cheaply made. That's not the case with the Pro. Some people expect it to cost the same as a high-end tablet, but it's not a tablet, it's a PC.

Tarrant64 said,
I don't feel the Surface Pro is overpriced at all. I may be a little biased (I own one), but the hardware is remarkable and Windows 8 (and 8.1) runs great on it. It's my mobile power horse, and battery life really isn't a problem. There really aren't well-made Core i5 smaller laptops that compete well (my opinion of course) with it's current price.

I have found that a lot of people saying the price needs to be reduced are basically saying that Microsoft should sell their product like it was a Dell or HP systems. Good products, but cheaply made. That's not the case with the Pro. Some people expect it to cost the same as a high-end tablet, but it's not a tablet, it's a PC.

Also believe that a lot of these people may want to get one, but due to the price it is a bit more than they can afford. The problem for Microsoft is that they have a really good quality product, but because of the cost they cannot get it into as many hands as possible. This is where they need to follow Google and Amazon's approach, sell the Surface at cost price. That is the only way to get more of these devices into the hands of people.

Supply & Demand 101. They wouldn't be lowering the price if units were selling as expected. They have no choice but to reduce inventory.

Microsoft's goal, like most other companies, is to sell products at the highest possible price the market will bear. Obviously the Surface is overpriced for what you get and people have spoken by not buying them as often as Microsoft had hoped.

Edited by COKid, Aug 4 2013, 2:03pm :

Good to see that some people over here understand the basic economics which MS does not understand at all. What MS have are people with Marketing degrees, even they are failing on that part. Surface should be priced under $400, even that will be a hard sell.

Auditor said,
Good to see that some people over here understand the basic economics which MS does not understand at all. What MS have are people with Marketing degrees, even they are failing on that part. Surface should be priced under $400, even that will be a hard sell.

So your expertise tells you that they should sell the surface pro at a loss?

Honestly, the price is only a concern, because Surface Pro is using yesterday's technology (i.e. pre-Haswell). I get that hardware testing is hard, especially when the final CPU design wasn't available at the time of Surface product design. But then, given how Microsoft partnered up with Intel in the past in the PC market, I'd imagine Microsoft should have gotten their hands on Haswell and released the Surface with the latest possible hardware. If not, Microsoft should have delayed the release of Surface, until they get the battery life right.

MFH said,

So your expertise tells you that they should sell the surface pro at a loss?

No my expertise tells them that they got the product which not many people want. Have you not heard for any business who had to sell their product loss because it is not selling well. MS got wrong with their product projection and costing and that is the reason they are at this position. Now the best strategy is to cut their losses and recover as much as they can rather than stubbornly sitting on unused inventory and incur more loss. But I guess you won't understand this as it appears you have not studied economics.

The best strategy to cut losses is not to drop price massively. If they do, how can you expect them to raise the price in 2nd gen devices?

They also have the products that people want, and it is just that, people want more out of spec! If Surface Pro can last 8 hours battery life, I would list my iPad on eBay in a heartbeat.

Surface Pro is overpriced? I don't understand that regardless. What other i5 laptops with 1080p touchscreens with the build quality of the Surface can be had for under $1k? And no one complains about the cost of the MacBook Air, which has the same screen resolution as the Surface RT (which, again, no one bitches about), has the same specs as the Pro, and costs a few hundred dollars more.
PC OEMs have done this, where if it doesn't have an Apple logo, it HAS to be several hundred dollars cheaper. Stupid.

Apple is completely different realm. People don't bitch, because if that's what they want, that's what they want.

A Surface Pro is a PC. There are so many options, then why pay that much when there are better options? I can get a Twist with Core i5 for $700. About an SSD for a little more. Then I get a full laptop AND a full tablet.

I can get a Lenovo touchscreen laptop with Core i5 and 8GB of RAM for $600.

True about the resolution, but I see little difference between them at that screen size. Sure, some people will. Those guys can spend the money if they want. For MOST people, these are priced too high still.

siah1214 said,
And no one complains about the cost of the MacBook Air...

Is this your first day on the Internet? Plenty of people complain about the cost of a MacBook Air, and everything else that Apple puts out. Wait until the new iPhone is announced. I'll bet anything that the news story here will be flooded with comments saying that it's overpriced, "Apple Tax," so on and so forth.

Also, I think the people who are interested in the Surface, or just a Windows 8 device, but think it may be a bit too steep in price, have no interest in anything Apple makes.

Amazing device (I use one for work), but it's still too pricey even with the discount.

I understand the parts are expensive, but when you can buy laptops with better specs for much cheaper, consumers and some businesses won't understand the price justification.

How could you compare a laptop to an tablet like with touch and ability to use a pen. I am not sure what you guys are trying to get to. But if they keep reducing the price they will kill their margins which will give them a competitive dissavantage.

j2006 said,
I understand the parts are expensive, but when you can buy laptops with better specs for much cheaper, consumers and some businesses won't understand the price justification.

One reason the Surface Pro is "expensive" is because Microsoft doesn't bundle crapware with it like all of the other OEMs do with their Windows PCs.

Price needs to be reduced by more. Either way I wouldn't buy one, waiting to see what the next version has to offer.

coderchi said,
Apparently people expect MS to become a charity... Geezus... the Surface Pro is cheap for the price the sell it at now.

It is not about charity, it is simple economics of supply and demand. MS need to price surface at the price point where consumer see the value in product. If your product is such a horrid that consumers can not justify the value then you have to lower it down. But you won't understand it as your are looking through your windows fanboy glass.

Do you notice many of the photos of the surface you see, include the keyboard - me thinks they are trying to suck in the laptop buyer market as well.

Auditor said,

It is not about charity, it is simple economics of supply and demand. MS need to price surface at the price point where consumer see the value in product. If your product is such a horrid that consumers can not justify the value then you have to lower it down. But you won't understand it as your are looking through your windows fanboy glass.

I'd be willing to bet the vast majority of their almost $1b in surface sales was their pro line.

Deihmos said,
Price needs to be reduced by more. Either way I wouldn't buy one, waiting to see what the next version has to offer.

Though I am also waiting for next version, price is really good. The reason I am waiting is that I want haswell processor but you might want to try surface pro, read reviews its awesome

paying $800 for just try out the surface pro is way to expensive. i'd wait for the haswell refresh. i know it's tough for microsoft to bet more money on the next generation when writing off $900 million on the current one.