Microsoft declined to comment on the surface tablets, they are going to build. IDC that is International Data Corporation one of the market researcher said that Microsoft is going to build more than 3 millions surface tablets and also offers his views of $199 version of the tablet in market. Bob O’Donnell is an IDC analyst. According to his opinion the surface RT is build with ARM processors and will not run the legacy software which runs on windows 7. Legacy software runs in Intel based surface that supports windows 8 pro. He also thinks that if they can make a million they cannot sell their product through Microsoft stores only. They will sell those tablets through traditional retail and they have not shared their distribution strategy yet.
O’Donnell also said that there are two ways to get this surface that is $599 or $199 for a subscription of two year. Former Microsoft Manager Hal Berenson said in a blog that $99 Xbox deal is just for telegraphing and you will get surface for $199 if you sign up for To Be Determined subscription. O’Donnell has some serious doubts on this surface tablet for $199. There is a MS Office subscription in every RT surface. So according to his opinion the pricing of the model wouldn’t be successful on a PC product.
There is video and music store in the surface tablet, theoretically they are offering free access to music and video that is Netfix or Pandora type deal. But you can remember the case happened with 3G and Netbooks. You had to pay a monthly fee after subscribing it.
O’Donnell also commented on the symbiotic relationship with Microsoft and PC makers. They are offering some discount to sell the software but not the hardware. There are four competitors in the market. In fair world they sell 25 percent and the price is same and with the price of $199 they sell 100 percent and everyone else in the market sells just zero percent. As they have some good relationship with PC makers so, if anyone undercut their prices their license will get cancelled and they wouldn’t have sold their products.