re: Microsoft $199 Surface RT Could Burn Kindle Fire
It would be insane to sell RT for $199. The biggest problem, other than Microsoft losing billions a year on that idea would be that no company could ever sell an Rt tablet for much more.$199 will become the expected price.
While Microsoft can lose as much money as it wishes, because of its monopoly profits in Windows and Office, its ODM's can't. This move would be a killer, as every other ODM would not produce any tablets. They would drop their products like a hot potato.
And what would be the point? I understand that this might get the tablets into a lot of hands. But Microsoft would lose at least $200, and possibly as much as $300 on every tablet sold! They would never be able to come close to making those losses up with software and content sales.
Think of it; Microsoft sells a million tablets in the quarter, and loses $250 million. Next quarter, they sell 5 million, and lose $1.25 billion. Next quarter, they sell 10 million, and lose $2.5 billion. Where's the sense in that?