Despite an earlier rumour from an ‘inside source’ which suggested that Microsoft would be pricing the Surface ARM
tablet at $199, analysts argue that the price will be closer to the iPad. At $199, the Microsoft Surface would be directly competing with the Google Nexus 7, and most likely taking a massive loss on the device. Bob O’Donnell, an analyst at IDC, the intelligence firm, says that the iPad will dictate the pricing of the Surface tablet.

In a phone interview, he also said that Microsoft was manufacturing over 3 million tablets:
Probably a little over 3 million, both [Intel] x86 and ARM.
There was also a suggestion that the Surface could be priced at $199, with a two-year subscription of some sort that comes with benefits that have not yet been announced. Microsoft’s only official comment on pricing is that it will be comparable to any other “ARM tablet or Intel Ultrabook-class PC

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