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Microsoft Surface Tablets priced over $1000? Not so fast...

Microsoft Surface Tablet

We updated yesterday's story on the Microsoft Surface Tablet price possibly costing more than $1,000 but wanted to make sure the update got out. For those who didn't catch the original story, Swedish website Webhallen.com listed the Microsoft Surface tablet at a price of 6990 krone (about $1,160 US) with Fourth Quarter 2012 availability.

This took us (and everyone else) by surprise because earlier speculation had pricing in the $399-599 range.

While the website is holding fast with it's $1100 plus pricing, Webhallen issued the following statement addressing the Surface pricing.

"Our customers are very interested in pre-ordering these products, so we have set a high preliminary pricing for the lineup so that they may be able to pre-order them.

Just to clarify, we have not received any pricing from Microsoft regarding MRSP or purchasing net cost, and any people who have booked the Surface at this high price will of course have their order adjusted before any product is shipped. So we’re not going to overcharge anyone for being an early adopter."

It's still a little strange to see the pre-order price set so high (this could turn out to be four times the actual cost) but at least we have a little bit better clarification as to why the pricing is so high.  Normally we see pre-order pricing set at the manufacturers suggested retail price but if you don't have the MSRP to go by, it's better to over price than under price?

Hopefully we'll see official pricing from Microsoft soon so we know exactly how many pennies we'll need to save.

Source: Techie-Buzz; Thanks, JamesDax3, for the tip!

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Reader comments

Microsoft Surface Tablets priced over $1000? Not so fast...

32 Comments

Keep in mind that they list the 32Gb iPad 3 for only approx. 600 krone less then this 'preliminary pricing'.  Clearly they charge more over there then we pay in NA for similar products.

My question is, does sweden have a Microsoft store? if not how can they even offer a price on the surface? Microsoft said it would only sell through their stores. So the prices seem to suggest that it could all be a guess on their end.

They said in stores and certified online retailers. From what I understand, this Swedish online store is a Microsoft certified retailer.

lol, I agree with you, but BI should NEVER be used as a reliable source for any WP-related issue.. as for resellers, I read somewhere (sorry can't find link tight now) an interview with Ballmer himself on Surface where he said partners are free to buy them direct from MSFT and resell them if they desire, but that's on them entirely. that's maybe what this reseller is planning.

You can get the same information from Microsoft's website saying Windows Stores and Microsoft online stores (meaning like the US one, England one, etc).
You are right about what Ballmer said. That being the case though, to come in without a loss, a non-MS company would have to sell it for at least the MS MSRP price + applicable taxes and shipping costs + shipping costs to the customer + overhead for the transaction. In other words, unless Microsoft gives a discount for bulk purchases, I don't think many people will buy them from a non-Microsoft-owned store (brick and mortar or online).

In an exclusive interview on crn.com, Ballmer said MS partners can sell the Surface as part of a customer solution:
 
"As to whether partners will eventually be able to sell the Surface, which is slated to be available from Microsoft.com and Microsoft retail stores, Ballmer said Microsoft’s initial emphasis was to put “one foot in front of the other” and get the product “out the door.” “But, if a partner says, ‘Hey look I want to sell some of these things. I want to put them in solutions,’ they can order some off Microsoft.com and sell them. There is nothing that gets in the way of that. But, we have not set up what I would call industrial distribution as sort of a first element. We may get there. But, if a partner wants to order some and put them in a solution with the customer, we’ll be excited to see that happen."

Of course it's better to overprice. You can't tell customers to pay more afterwards, but they'll gladly pay less when the MSRP is lower.

duuuuh..... seriously, it was so obvious specially when Microsoft said RT prices would compete with current tablets and Intel surface with ultrabooks. it was so silly to believe $1000 for RT 32gb version (that means the cheapest) was real

Do you guys think they set it that high to see how many people would be willing to pay that price? That's actually a good thing to test.

Too many tipsters and insiders in this world of tech. I generally wait for an official world from the vendor.
As Emi stated  "Microsoft said RT prices would compete with current tablets and Intel surface with ultrabooks" In the mean i'll just enjoy the pictures and video that posted of this tablet. 

Also we got 25% tax, ps swedish stores alwayes finds a way to get stuff that has not been announced to us. we had lumia 800 for months before it got to our carriers :P

Good clarification, but one doesn't have to be a rocket scientist to have figured out the reason for such pricing. It would be a disaster if any retail accepted thousands of pre orders only for then changing the price to a higher value.

This was one of those obvious "duh" moments... there was no way that pricing could be accurate, and I'm quite certain Microsoft realizes this fact. In fact, I'm willing to bet that Microsoft (like with the original Xbox releases) is willing to take a financial hit, if necessary, to keep the costs down for consumers in the initial release goals. Get them out, get them in people's hands, and pray it spreads like wildfire. I'm not saying they will as a guarantee, but I'm willing to bet that BUILD conference will feature them for all attendees.

This limited release they seem to be planning is not going to work with how much excitement there is around Surface. I don't see why Amazon has to be jumping through hoops just to get a hold of some Surfaces that it will then have to sell at a higher price...

I dont get this statement: "so we have set a high preliminary pricing for the lineup so that they may be able to pre-order them."

They, and other sites here in Sweden, do this sort of thing all the time. It's standard procedure when allowing people do pre-order something that isn't officially priced yet. They do the same thing for the Xbox 720.
You set a price that high enough to deter people who doesn't really know what they're getting into and to make it bulletproof enough that you don't have to raise prices for the customers that have pre-ordered. It's not considered weird, and it's sad that this "news" would hit Webhallen, since it's probably the most well-liked business among geeks in Sweden. They go out of their way to make people happy there, and often do their own imports of things that are normally only found in the US.
If anyone had done some due diligence and made a call to, say IDG Sweden or Sweclockers.com this would've never been news.

The fact they are throwing a number out there, knowing that people would think this (and of they didn't realize that, they are idiots) was completely irresponsible.

I agree... They should've either had no price or set the price so high it would be unmistakeable that it was a temporary price i.e. $999999.99

They're not idiots. They've done this sort of thing for other goods, and there's never been any news written about this. Fact is, that nobody seemed to even consider calling up someone local and asking if this is out of the ordinary. It really shows that tech journalism generally is a joke.

I'm not feeling these trial balloons Microsoft is throwing out. We still don't know what the battery life is yet.

One thing to really consider when comparing prices between Sweden and the US is that current exchange rates do not really matter. Most of the time we get MSRPs that are just pretty much the same numbers as in dollars, but with an added zero.
 
For instance, a product with a $200 price tag would get a 2000 SEK price tag, instead of the 1500 SEK it should be. This can be seen in the pricing of both the iPad 2 and the new iPad in the online Apple Store.
 
In the US Apple Store, the iPad 2 is priced $399 and the new iPad is priced $499.
In the Swedish Apple Store, the iPad 2 is priced 3595 SEK and the new iPad is priced 4395 SEK. That translates to about $490 for the iPad 2 and a whopping $600 for the new iPad!
This can be seen in most consumer electronics, as most of the current generation consoles follow this exact pattern, along with TVs, cameras, etc.
I hope this makes some sense of all these speculations.