Are Surface 3's sold for profit? .. Should they be?

[bsayegh]

The Surface Pro 3 is a pretty awesome device, but its also really expensive. Especially when you factor in the keyboard. Its funny to me that whenever you see it in commercials, they keyboard is a part of the package. I would think that a lot of people go out looking for this device, but a turned off by the fact that they have to buy a separate keyboard (and, lets be honest, its not that great of a keyboard).

Does MS sell these things at cost of for a profit? It seems like they sell it for a profit, which makes sense, but I think the device really needs a price cut. They are trying to build a successful brand right now, and the price is probably what is killing them. If they got like 20 million people to buy a surface pro 3, I think it would be much easier to sell the Surface 4 at a higher rate. Maybe at the very least they just need to include the keyboard? Its not like they are hurting for money right now, so they might want to bight the bullet for a little while.

Seems to be working with the Xbox One. At least as far as selling consoles (not sure how much money they have lost on it, though). MS hasn't been losing money because they are involved in so many businesses, but they have certainly lost market share.

 

[Tsang Fai]

SP3 is expensive but is worth for its price. To buy a MacBook with similar spec , you need to pay roughly the same money. (but MacBook does not have touchscreen & pen). If you buy the Retina MacBook, you need even USD 200 more than SP3... (still with no touchscreen & pen).

The point is whether you are willing to buy the device. For me, I love SP3 not just for its functionalities but also for its build quality. It looks so beautiful (yes, as beautiful as a MacBook) that I am proud of using it in front of my students, colleagues and even strangers, although most of them are using Mac & other Windows laptops.

Have to admit that still many people think SP3 is expensive.

The type cover is great. Typing is comfortable and fast (even better than traditional laptop keyboard). The touchpad has excellent response. Agree that the type cover is quite expensive. Maybe MS should cut the price by 50% (they still make profit). I believe the reason why it is sold separately is that some people may prefer to use their own keyboard (Bluetooth/USB) which is must cheaper.
(Edit: type cover is easy to get dirty, especially for the light-coloured ones. Not sure whether MS would consider some other dirt-resistant materials...)

Agree that MS should seriously consider the possibility of releasing a more affordable version of Surface. Maybe a version with a lower resolution, slower CPU... (is enough for the general users).

 

[aximtreo]

Gosh, I want to buy a Lamgorghini. It's very expensive. Should they cut the price to Chevy prices so I can buy one. Are you serious?

 

[bsayegh]

SP3 is expensive but is worth for its price. To buy a MacBook with similar spec , you need to pay roughly the same money. (but MacBook does not have touchscreen & pen). If you buy the Retina MacBook, you need even USD 200 more than SP3... (still with no touchscreen & pen).

The point is whether you are willing to buy the device. For me, I love SP3 not just for its functionalities but also for its build quality. It looks so beautiful (yes, as beautiful as a MacBook) that I am proud of using it in front of my students, colleagues and even strangers, although most of them are using Mac & other Windows laptops.

Have to admit that still many people think SP3 is expensive.

The type cover is great. Typing is comfortable and fast (even better than traditional laptop keyboard). The touchpad has excellent response. Agree that the type cover is quite expensive. Maybe MS should cut the price by 50% (they still make profit). I believe the reason why it is sold separately is that some people may prefer to use their own keyboard (Bluetooth/USB) which is must cheaper.

Agree that MS should seriously consider the possibility of releasing a more affordable version of Surface. Maybe a version with a lower resolution, slower CPU... (is enough for the general users).

I think its an awesome device as well. One of my cousins has one and he loves it. It wouldn't be a practical laptop for me since I need a bigger screen and don't really care much for tablets in general, but I think the device itself is awesome.

While there are some people who would prefer to use their own keyboard, the advertisements all use the type cover as a selling point. Its only really a tablet that can replace your laptop if you have the type cover (you can provide your own keyboard, but that's not the selling point they are trying to get across). I think they should sell if for the price of a Surface 3 and just include the type cover. I still don't think they would be losing money on it.

Its like buying an Xbox One without a controller. Yeah you can use Kinect to control things similar to a touch screen, but most of us expect a controller and will end up getting one. Since the controller is pretty expensive, you don't want to have to buy one on top of the console. Only having a controller isn't really what Xbox advertises as one if its main benefits. Having a detachable keyboard is something that Surface advertises as a primary selling point, so it should be included.

 

[Adam_ation]

I love my SP3 I think its a fantastic toy, I flat out refused to buy the keyboard though for the reason they touted it as a tablet to replace your laptop yet you only get half a laptop. I bought the much cheaper and far better (in my eyes) microsoft wedge keyboard.

I think they should either bundle the keyboard and tablet together ( even if that means charging more, had that been the case I would have still bought it ) or advertise it as a tablet and less off a hybrid to stop people getting annoyed at the fact they charge extra for the keyboard that is in every fricken advertisement - Adam

 

[coolqf]

SP3 is expensive but is worth for its price. To buy a MacBook with similar spec , you need to pay roughly the same money. (but MacBook does not have touchscreen & pen). If you buy the Retina MacBook, you need even USD 200 more than SP3... (still with no touchscreen & pen).

The point is whether you are willing to buy the device. For me, I love SP3 not just for its functionalities but also for its build quality. It looks so beautiful (yes, as beautiful as a MacBook) that I am proud of using it in front of my students, colleagues and even strangers, although most of them are using Mac & other Windows laptops.

Have to admit that still many people think SP3 is expensive.

The type cover is great. Typing is comfortable and fast (even better than traditional laptop keyboard). The touchpad has excellent response. Agree that the type cover is quite expensive. Maybe MS should cut the price by 50% (they still make profit). I believe the reason why it is sold separately is that some people may prefer to use their own keyboard (Bluetooth/USB) which is must cheaper.

Agree that MS should seriously consider the possibility of releasing a more affordable version of Surface. Maybe a version with a lower resolution, slower CPU... (is enough for the general users).

A little unfaoir to compare the MBP to the Surface 3. A better comparison is the MBA, but if you omit the touch/pen, the MBA is cheaper when you consider the keyboard.

The surface 3 is truly a niche device...

 

[Trill Gates]

The Surface Pro 3 is a pretty awesome device, but its also really expensive. Especially when you factor in the keyboard. Its funny to me that whenever you see it in commercials, they keyboard is a part of the package. I would think that a lot of people go out looking for this device, but a turned off by the fact that they have to buy a separate keyboard (and, lets be honest, its not that great of a keyboard).

Does MS sell these things at cost of for a profit? It seems like they sell it for a profit, which makes sense, but I think the device really needs a price cut. They are trying to build a successful brand right now, and the price is probably what is killing them. If they got like 20 million people to buy a surface pro 3, I think it would be much easier to sell the Surface 4 at a higher rate. Maybe at the very least they just need to include the keyboard? Its not like they are hurting for money right now, so they might want to bight the bullet for a little while.

Seems to be working with the Xbox One. At least as far as selling consoles (not sure how much money they have lost on it, though). MS hasn't been losing money because they are involved in so many businesses, but they have certainly lost market share.

Given the market value of the various components used I'd say Microsoft's margins are quite slim on the i3 and 128gb i5 models in their line. The$800 i3 Model with 64GB SSD blows anything Apple has out of the water at that price point. I think for 800 bucks Apple will sell you a 16 gig iPad that has no expandable memory and no USB ports.

Long story short. No the Surface Pro 3 should not be reduced in price.

 

[Nicholas Maguire]

I think prices should be lowered, or at least include the keyboard thing. As said, they DO include that in all advertisements. Not including it is like a slap in the face to the people who get interested, then discover they have to pay quite a bit extra for it.

 

[Trill Gates]

I think prices should be lowered, or at least include the keyboard thing. As said, they DO include that in all advertisements. Not including it is like a slap in the face to the people who get interested, then discover they have to pay quite a bit extra for it.

No these products are known as "high level involvement products" in the marketing field. What this means is that the consumer is much more price sensitive and does alot of research and planning before buying. If MSFT included the keyboard it would have raised the price of the whole product and then MSFT runs into the problems they had with Xbox One including the Kinect sensor, which made the Xbox One $100 more than its competition which resulted in more people buying PS4s. People want to pick and choose what optional non-essential features to add to their purchase. It would cost MSFT more money to include the keyboard in some packages and not include it in others. The solution is to separate the components.

 

[Nicholas Maguire]

No these products are known as "high level involvement products" in the marketing field. What this means is that the consumer is much more price sensitive and does alot of research and planning before buying. If MSFT included the keyboard it would have raised the price of the whole product and then MSFT runs into the problems they had with Xbox One including the Kinect sensor, which made the Xbox One $100 more than its competition which resulted in more people buying PS4s. People want to pick and choose what optional non-essential features to add to their purchase. It would cost MSFT more money to include the keyboard in some packages and not include it in others. The solution is to separate the components.

While I see what you mean, I think they could add the type cover without raising the price, and still profit from it.
Or maybe just $25 more. I think most people want the type cover. It's not like its forced to stay on the Surface, you use it when you need it.

 

[Zulfigar]

While I see what you mean, I think they could add the type cover without raising the price, and still profit from it.
Or maybe just $25 more. I think most people want the type cover. It's not like its forced to stay on the Surface, you use it when you need it.

Which color would you force people to buy then? Why that color? Why take the choice away? What if I wanted the other color, then I'd have two keyboards and only need one; what'll I do with the keyboard I won't use?

Now, what about just making the keyboard cheaper, rather than give one for free (25-50 maybe?).

 

[Tsang Fai]

I love my SP3 I think its a fantastic toy, I flat out refused to buy the keyboard though for the reason they touted it as a tablet to replace your laptop yet you only get half a laptop. I bought the much cheaper and far better (in my eyes) microsoft wedge keyboard.

I think they should either bundle the keyboard and tablet together ( even if that means charging more, had that been the case I would have still bought it ) or advertise it as a tablet and less off a hybrid to stop people getting annoyed at the fact they charge extra for the keyboard that is in every fricken advertisement - Adam

The slogan "tablet that can replace your laptop" sounds great. But the sad fact is that I have many colleagues asking me the same question, "that device looks good. So it can run tablet app only? How about Office?" Still many people have the wrong impression that Surface Pro is not running a full version of Windows....

I would rather think of SP3 as a ultra-light laptop that can also be a great tablet.

 

[jnjroach]

The only way to make it a viable option to include the Keyboard is to get rid of the choice of colors (from an inventory and profitability perspective), as the color popularity varies from area to area even within a market. They had the bundled SKU with the first gen products and they didn't sell as well as the individual components and had a much lower NSAT, because most people want the choice of colors. Profit margins when it comes to hardware are very slim...

 

[JohnStrk]

Besides paying an extra $130 for the keyboard, you could also add another $150 to your investment by adding the Microsoft Complete warranty to cover your expensive investment. I agree that they should at least start bundling the keyboard.

I'm looking to get a Surface 2 soon during the upcoming sales or a cheap refurb from MS but was also looking at the SP3 and I like it a lot. It just costs around $500 more than I want to spend and I really don't need full Windows 8.1 or a powerful processor. I have a newly self built $1000 personal desktop for all that.

 

[Ruined]

Surface Pro 3 is designed to be more expensive as not to undercut Microsoft's other OEMs.

If the digitizer is not a requirement I recommend taking a look at the new Dell Inspiron 13 7000 series. It has a premium build quality (similar look and feel to Lumia 1020 phone ironically) but is almost half the price of sp3 with similar specs. It is a clamshell with 180 degree hinge like the Lenovo Yoga.

 

[John Steffes]

I do not know the margins for the Surface Pro 3, but the Surface Pro 2 8G/512G, started at $1799, now you can find it for $999.99 that is a saving of $799.01, the Type Cover 2 cost $129.99, yet I got mine for $79.99. So if those sales speak to the margin of profit used in the previous models.

I bet yes the Surface Pro 3 is sold at a profit, the keyboards are sold at a profit, and the Surface Pro 3 Dock is sold at a profit...

Should they be? Well Microsoft like most companies are in business to make money, so if I make the product for $50 and sell it for $150, I cover defect/exchanges, and still make enough to cover expenses.

But I would never pay full price for a device, when I know it is way overpriced, find a coupon, a deal, something...