Thursday, November 29, 2012

Microsoft Surface Pricing

Microsoft  Surface

The Microsoft Surface Tablet is now available in the Philippines. Microsoft hopes it can take aways some of the market from Apple's iPad which makes up a little more than over half of the tablets sold.

The 32 GB version of the Microsoft Surface is priced at Php29,999, which is a bit more than the expected Php28,990 price of the Apple iPad 4 32 GB WiFi when it gets here. Given that the Microsoft Surface comes with MS Office Home & Student (Word, Excel, Powerpoint and One Note), it price priced to match the price of the Apple iPad 4 32 GB WiFi.

People who would choose a Microsoft Surface over an iPad would mainly do so because of MS Office or the keyboard, for office type software. Getting the Touch Keyboard Cover with a 32 GB Microsoft Surface brings the price up to Php33,999. If you really plan to do a fair bit of typing with the Microsoft Surface, than the Type Keyboard Cover is the better choice. This would bring the price up to Php 36,998.

The 64 GB version of the Microsoft Surface is also available, but only together with a bundled for a total price of Php37,999.

The pricing is competitive, but it will not be an iPad killer. 

First, you can buy an iPad 2 for as low as Php18,990 or in a few weeks get an iPad 4 16 GB WiFi model for Php23,990. Microsoft has no Surface models available to compete at this price points. 

Second, even those who want a 32 GB or 64 GB tablet, the iPad is a better choice, unless you really want the keyboard or MS Office. The iPad has more apps. 

Me, I would be in the marker for a ultraportable laptop like device. If I bought a Microsoft Surface, I would get the 32 GB model with a Type Keyboard Cover. That would cost me all of Php36,998. Now the question is, for Php36,998 is there anything else I would like better? 

Asus Transformer Pad TF300T

There is the Android powered Asus Transformer Pad TF300T 32 GB with a Mobile Keyboard Dock for Php24,990. The Microsoft Surface Keyboard Cover is so thin it feels like you are not carrying a keyboard around. The Asus Transformer Pad which looked innovative last year, looks cumbersome and bulky with the sleek ingenious surface design. But still that is all of 12K cheaper.


Another option would be to get a Asus VivoBok x202e. This starts as low as Php20,990 and combines a touchscreen and Windows 8.

In sum, the Microsoft Surface is priced reasonably and has no direct competition for those who want a tablet with a keyboard. I just would not expect to see to many of these things at the local Starbucks.

8 comments:

  1. I am very confused... For 30k you can get the 32gb surface without a touch cover but for the same price you can get the 64gb wifi iPad3 (and at that, for even a little bit more you can get the 64gb ipad 4) How is this competitive? Your requirement for a laptop-like tablet set up might be all well and good, but regular people aren't wired to shop for tablets like that.

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    1. A 64 GB WiFi only iPad 4 has a suggested retail price of Php33,990. A iPad 4 32 GB Wifi only has a suggested retail price of Php28,990, or 1K less than the Surface. I don't use grey market prices in price comparisons.

      I would not recommend the iPad 3 over an iPad 4 four a few thousand difference in price.

      And you kind of missed this:

      "Second, even those who want a 32 GB or 64 GB tablet, the iPad is a better choice, unless you really want the keyboard or MS Office. The iPad has more apps."

      Delete
    2. Robert, you went off topic. The price of the MS Surface is my beef here, and the fact that you think "The pricing is competitive" and "In sum, the Microsoft Surface is priced reasonably"

      There is no doubt that the iPad is a better choice for most use-cases... and obviously the Vivobook and the TF300T are vastly better value-for-money purchases, there is also no contention there..

      But run through your article again, and have someone else read through it... It sounds as if you're giving the Surface a thumbs-up on pricing.

      ... and the very reason I'm confused is, "Are you giving the Surface a positive nod on their pricing?"

      Delete
    3. @Raul, si Belle ito...

      Pehaps Robert just used the wrong words, maybe it is that instead of "The pricing is competitive", he meant "comparative" or maybe "at par more or less"

      @Robert, I am also confused at "In sum, the Microsoft Surface is priced reasonably and has no direct competition for those who want a tablet with a keyboard." ... and this after you described a tablet with a keyboard that is 12k cheaper...

      In fact, I also want to know (Lemme copy-paste here): "Are you giving the Surface a positive nod on their pricing?"

      Delete
    4. First I think you need to re-read this part:

      "The pricing is competitive, but it will not be an iPad killer.

      First, you can buy an iPad 2 for as low as Php18,990 or in a few weeks get an iPad 4 16 GB WiFi model for Php23,990. Microsoft has no Surface models available to compete at this price points.

      Second, even those who want a 32 GB or 64 GB tablet, the iPad is a better choice, unless you really want the keyboard or MS Office. The iPad has more apps."

      This is the definition of competitve pricing:

      "Setting the price of a product or service based on what the competition is charging. Competitive pricing is used more often by businesses selling similar products, since services can vary from business to business while the attributes of a product remain similar. This type of pricing strategy is generally used once a price for a product or service has reached a level of equilibrium, which often occurs when a product has been on the market for a long time and there are many substitutes for the product."

      Read more: http://www.investopedia.com/terms/c/competitive-pricing.asp#ixzz2DeOFuZEv

      Basically, it means the Microsoft Surface is price to match the iPad.

      iPad 3/4 32 GB WiFi = 28,900
      Microsoft Surface 32 GB WiFi + MS Office = 29,990

      Now what is the direct competition for the Surface? An alternative would be the Transformer. But if you want MS Office, well there is no MS office for Android yet.

      Carrying the Transformer around with a keyboard is as bulky as carrying a laptop. With the Transformer you will decide each time you carry it with you whether you will bring the keyboard or not. It almost doubles the weight of the device (Tablet = 635 g, Dock = 546 g).

      With the Surface, the keyboard is as bulky as the protective cover on a tablet.

      While they both have keyboards the two really are very different. The Surface is the nicer device to carry around, it runs Office, but you have to decide for your self if it is worth 12K more with the Type Keyboard.

      The VivoBook is another option, but it really is a 3 pound touchscreen laptop and not a hybrid device.

      "Are you giving the Surface a positive nod on their pricing?"

      I think that is already answered by this:

      "Second, even those who want a 32 GB or 64 GB tablet, the iPad is a better choice, unless you really want the keyboard or MS Office. The iPad has more apps."

      But, lemme ask you? How much do you think the Surface should cost?

      Delete
    5. I guess I should add on this comment "and this after you described a tablet with a keyboard that is 12k cheaper". 12K cheaper is a lot, or not depending on your priorities.

      I am typing this on a MacBook Air, so maybe a put too much a premium on lighter and more portable devices. I could really be doing all my work on a 14-inch 20K laptop.

      But, personally I am willing to pay a fair bit more for lighter and more portable.

      Delete
  2. ... And wasn't there reports that you'd only net about half the listed 32gb space to use on the surface... To me, the value proposition isn't there... It'd be better to buy a touch screen win 8 notebook and at least you'd be able to run legacy programs... The Surface is much too expensive for what it offers.

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    Replies
    1. Hence I mentioned the VivioBook. The other Windows 8 touchscreen laptops/tablet PC's start at 56K.

      If you can find me other alternatives to the Surface, please do post them here and I will add them in the article.

      Delete

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