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Microsoft Slashes Surface Pro
Microsoft on slashed the price of its Surface Pro tablet by $100, or between 10% and 11%, dropping the 64GB model to $799 and the 128GB to $899.
The cuts came three weeks after much more dramatic discounts to Microsoft’s Surface RT, which was reduced by up to 30% to prices starting at $349.
Microsoft said that the price cuts would be valid in the U.S. and Canada until August 30, or while supplies last. Discounts were also offered to customers in China, Hong Kong and Taiwan.
U.S. electronics retailer Best Buy — a key Microsoft partner — also was selling the Surface Pro tablets at the lower prices Sunday, as was Staples.
The Surface Pro tablets rely on Windows 8 Pro and Intel processors, rather than the stripped-down Windows RT and lower-powered ARM processors of the Surface RT devices. Surface Pro tablets can run traditional Windows software like the full-featured Office 2013 productivity suite.
While the price cuts were reminiscent of the more aggressive Surface RT discounts, their much smaller size could simply be part of Microsoft’s back-to-school marketing: August is the biggest month for that selling season, which is second only to the end-of-the-year holidays for retailers pushing consumer electronics, personal computers and tablets.
Microsoft is expected to refresh its Surface tablet lines this fall, a notion reinforced by company executives, who have repeatedly pledged that the company is in the tablet business for the long haul. The Surface Pro discounts could be part of the usual push to empty inventory prior to the launch of new models.
The 10% to 11% price cuts were also in line with other hardware makers’ recent discounting. Last month, Best Buy ran a short-term deal that chopped prices of the MacBook Pro by as much as 17%, and for college students, up to 25%.
MS Office Demand Fizzles
After a promising start, downloads of Microsoft’s free Office for the iPhone quickly nosedived, as the latest data from a mobile app analytics company showed.
But at least 200,000 copies of the small suite — iPhone versions of Word, Excel and PowerPoint — were downloaded in the first six days.
Distimo, a Dutch firm that tracks app store market data for several platforms, including Apple’s iOS, Google’s Android, and Microsoft’s Windows 8 and Windows Phone, said Office Mobile for the iPhone debuted in the No. 10 spot on June 15, the day after Microsoft launched the free app.
That was Office Mobile’s peak: On June 16, Office Mobile slipped to the No. 19 position among all free iPhone apps, then continued to slide throughout the week of June 17-23, starting that seven-day stretch at No. 36, falling to No. 86 by Friday, June 21, and ending at No. 299 on June 23.
From June 24 to July 6, Office Mobile was not on Distimo’s leaderboard, which lists only the top 400 downloaded apps.
The number of downloads of Office Mobile for iPhone is unknown — Distimo requires a paid account to show developers the estimated downloads of their apps and those of competitors, and did not reply to questions Sunday — but the tally was probably significant.
According to Distimo, to place in the App Store’s No. 10 spot, an app must average 72,000 downloads daily. Office Mobile was ranked No. 10 on June 15. Apps ranked at No. 50 averaged 23,000 downloads daily: Office Mobile held position at No. 50 or lower for five consecutive days.
Those numbers implied that at least 200,000 copies of Office Mobile were downloaded in the six days between June 15 and June 20.
Likewise, the sharp decline of Office Mobile’s position in the App Store’s free list after just a week hints at a pent-up demand that was quickly satisfied.
Although rumors of Office on iOS had circulated since the iPad’s 2010 introduction, they heated up last November when reports claimed Microsoft would launch a mobile version of the suite this year and tie the software to Office 365. At the time, most analysts agreed that Office 365 was the smart move because it could boost interest in the subscription concept Microsoft has bet will result in more, and more regular, revenue from its Office cash cow.
Linking Office on iOS to Office 365 would also let Microsoft avoid the Apple “tax,” the 30% cut that Apple takes from all App Store sales.
Only Office 365 subscribers can use Office Mobile. Subscriptions range from the consumer-grade Office 365 Home Premium, which costs $100 annually, to several business plans that start at $150 per user per year and climb to $264 per user per year.