As Windows 8 tablets are gaining momentum, there is lot of buzz around its ‘pricing strategy’. A recent survey from ZDNet, tried to capture the optimum price that users are comfortable to spend in owning a Windows 8 tablet. Price range of $200- $399 got the maximum percentage of votes at 38%. 19% of the voted prefer a price tag of less than $199. No prizes for guessing that Amazon’s Kindle Fire selling at $199 made these guys optimistic and demanding. Also there are many entry level Android tablets swarming the market at similar prices. 27% are ready to pay anywhere between $400 to $599.
A 32GB WiFi enabled iPad 2 costs around $599 and only 16% of users are ready to pay more than this for a Windows 8 tablet. At least on this part, the writing on the wall is clear. A price of $599 should give the OEMs a sizable profit margin. A price below $199 would not be feasible as the OEMs need to take a significant cut. ZDNet thinks that $499 is the sweet-spot for pricing a Windows 8 tablet. This is same as the price of an iPad and Microsoft might not be having much leverage in changing this as they are late entrants in the tablet party.
Anything above $500 would not help Windows 8 in cutting Apple’s share of the tablet market. We need not look further than Motorola Xoom and RIM’s playbook to see the consequences if manufacturers become greedy and price Windows 8 tablets exorbitantly. Manufacturers like Dell, HP & Samsung might be pondering over these results in fine-tuning their strategy. Launch of the iPad 3 and Apple giving discounts on iPad 2 might completely alter the picture though.
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