News

Report: Microsoft Is Consulting with Acer on Surface Pricing

• By Kurt Mackie
• August 11, 2012

Microsoft hardware partner Acer is consulting with Redmond over potential pricing for the forthcoming Surface tablet, according to a report by Digitimes.

Acer CEO and Chairman J.T. Wang. said that Acer doesn't fear the competition with Microsoft and "only wishes to understand the new rules of the game, and so will continue to try to communicate with Microsoft to understand the situation," Digitimes reported.

Microsoft unveiled its line of Surface tablet machines on June 19. Some of its hardware partners building Windows 8 PCs, including Acer, were taken by surprise and were not made aware of the Surface project until its debut.

Wang suggested that Microsoft is considering "creating a price gap to minimize the negative impact on other vendors' product lineups," according to the Digitimes story. At the $499 to $599 price range for a Surface device, the effect would be less severe on partners, according to the story.

Microsoft hasn't announced pricing for Surface, which is being launched on two hardware platforms. The Windows RT version of Surface supporting ARM components is expected to be available when Windows 8 is launched on Oct. 26. Surface Pro, the Windows 8 version based on x86 components, is planned for launch three months later.

The fact that Wang apparently does not know what Microsoft is planning to charge for Surface at this point, two months before launch, shows the difficulties that PC makers face when Microsoft acts as both supplier and competitor.

Wang has publicly criticized Microsoft's move into the tablet hardware space. He reportedly has said that Microsoft should "think twice" about producing its own hardware, saying that "it will create a huge negative impact for the ecosystem and other brands may take a negative reaction." Wang suggested that Acer could abandon the Windows platform as a result.

Microsoft has acknowledged the potential harm in a 10-K Form filing with the U.S. Securities and Exchange Commission. That form states that "our Surface devices will compete with products made by our OEM partners, which may affect their commitment to our [Windows] platform."

Original equipment manufacturers that have indicated forthcoming Windows 8 products include Acer, Asus, Dell, Lenovo and Toshiba, based on June Computex announcements.     

See Also:

• Microsoft: Surface Tablets May Cause OEMs To Abandon Windows
• Analyst Slams Surface's Chances, Urges OEMs To Boycott Windows RT
• 'Surface' Observations About Microsoft's New Tablets