Microsoft to price new tablet near same as iPad

SAN FRANCISCO —

Microsoft said its new Surface tablet computer designed to challenge Apple’s iPad will be sold at roughly the same price as the market leader. Microsoft began taking pre-orders for the Surface, which will start at $499 (382 euros) for U.S. customers for a tablet with 32 gigabytes of memory. A 64GB version bundled with a black touch cover is priced at $699.

The prices are in line with the iPad, which begins at $499 but with less memory. Apple is expected to unveil a low-priced “iPad Mini” next week.

Surface will be available Oct 26 at Microsoft Store locations in the United States and Canada and will be sold online in eight markets: Australia, Canada, China, France, Germany, Hong Kong, Britain and the United States.

Microsoft chief executive Steve Ballmer has described the iPad challenger complete with a built-in stand and ultra thin covers which double as keyboards in a range of colors as a tablet that “works and plays.” The tablet will run on the Windows 8 operating system, which is also being released Oct 26.

Analysts said Microsoft was walking a fine line in not pricing the Surface too low, which could upset its partners, or too high, to discourage buyers. 

Morgan Stanley’s Adam Holt called Surface “a compelling value” because it includes the Office software suite, which includes the widely used word-processor Word, which may be key for business users.

The Windows 8 Pro version of Surface is the model user could envision having traction within enterprises.