Mike Isaac

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On Heels of Massive RT Write-Down, Microsoft Cuts Surface Pro Prices Through August

microsoft_surface_rt_proBeginning today and stretching through the end of August, Microsoft plans to discount the price of its Surface Pro tablets by $100.

The discounted price, first spotted by Tom Warren at The Verge, affects the 64 gigabyte and 128GB models of the Redmond, Wash., software giant’s first in-house tablet product, cutting the cost to $700 and $800 out of the box, respectively.

The cuts come just weeks after Microsoft made similar price cuts to its Surface RT product, which seems to have driven a massive $900 million write-down on unsold inventory, first reported in the company’s earnings last month. Those “price adjustments” were at first only focused on the RT models, but, as of today, Microsoft is obviously extending that to its higher-end “Pro” versions.

Rough, considering that the entirety of Microsoft’s revenue derived from Surface tablet products only constitutes about the same amount. The company revealed in a 10-K filing last week that, for the period between the surface’s launch in October of last year through June 30, Surface revenue accounted for a mere $853 million — less than the write-down the company took on its RTs.

The Surface Pro price cuts only affect customers in the U.S., Taiwan, Hong Kong, China and Canada, and for now will be in effect through Aug. 29.


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