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How low can Microsoft go with the Surface Pro?

06 Aug 13

Following reduced prices on its Surface RT tablets, Microsoft has struck again, slashing the Surface Pro by US$100.

Whispering the news out of Redmond, the company reduced both its 64 and 128GB Surface pro models, bringing the base prices down to $799 and $899 respectively.

"We've been seeing great worldwide success with Surface RT pricing and keyboard-cover promotions over the past several months and our proud to offer Surface Pro at more affordable prices starting today," Microsoft told Engadget.

"People who buy Surface love Surface, and we're eager for more people to their hands on Surface and share their excitement."

After slashing Surface RT tablets by as much as 30% last month, Microsoft's latest price drop follows an admission by CEO Steve Ballmer that the company overestimated the demand for Surface-type devices.

Admitting a huge Surface RT mistake by uttering the line… "we built a few more devices than we could sell," could Ballmer be set for a similar back-track with the Surface Pro?

Ballmer's comments were rare, so chances of a similar acknowledgement is virtually impossible. That said, with a $900m hit on Surface devices, maybe the charismatic CEO is letting the numbers do the talking.

The company’s earnings and sales missed expectations by a relatively wide margin last month, with the write down of Surface RT “inventory adjustments” denting profits.

Adopting a new 'One Microsoft' philosophy is top of Ballmer's agenda at present, with implementing a damage control Surface plan now coming up as a very close second.

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