Microsoft Surface tablet too costly?

By Althea Benloss | Jun 21, 2012 02:56 PM EDT

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The Microsoft Surface tablet was unveiled on Monday and created a lot of anticipation for consumers. However, there have been rumors about the significantly high price for the Surface that may have consumers clutching your wallets tighter than planned.

According to Digitimes, its sources have estimated that the Ivy Bridge-powered Surface will cost at least US $799, while the ARM-based versionis expected to be priced above US $599.

"It is likely that Microsoft's ARM-based tablet will be targeted for the high end of the market," said NPD DisplaySearch analyst Richard Shim, in a blog post. If this information is indeed accurate, it would imply that the more powerful Surface will be comparable with the most affordable Ultrabooks currently.

On the other hand, the Windows RT, which is likely to go against the iPad, will hae a higher starting price than Apple's US $499 tablet. To be fair, the Microsoft surface comes with 32GB of internal storage while entry level iPad has only 16GB. Yet, the iPad is at an advantage with its high-resolution screen.

The upshot, according to Shim, is that Microsoft Surface tablets aren't likely to produce blockbuster sales when they debut later this year. "It will likely be a slow build to significant influence for Microsoft in the tablet category," said the analyst.

Microsoft has not confirmed any pricing details for its Surface tablets.

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