Will Microsoft Strategy of $200 Credit Work for Surface Tablet?

Will Microsoft Strategy of $200 Credit Work for Surface?

Microsoft has planned to offer minimum $200 credit to customers who would trade their “gently used” Apple iPads for Microsoft Surface. The big question is if the die-hard Apple fans fall for this offer? A general viewpoint is that consumers who shift to Apple devices, do not return back to Microsoft or Windows products. So, many market experts doubt that the effort of Microsoft will bear any fruit.

Microsoft spokesman Rich Adolph denied that Microsoft move is competitive but added that the company has given the deal keeping in mind the recycling program. Microsoft has put lot of marketing effort to increase sales of Microsoft Surface tablets. The company also launched online comparison between iPad and Surface in May this year.

Apple leads the markets in terms of tablet sales and iPad has been very successful product in the portfolio of the company. Gartner mobile device analyst Van Baker said that Apple users won’t get excited by Microsoft offer. He added that the $200 credit won’t fix the major problem Microsoft faces, as there are not as many exciting apps compared to Apple’s store.

Microsoft sells Surface RT tablet for $349 and Surface Pro for $799. The company sold 0.9 million tablets in first quarter but the sales declined to 300,000 during second quarter. Compared to Microsoft sales of 0.9 million tablets, Apple sold 19.5 million tablets in first quarter.

Microsoft acquired devices business of Finnish mobile phone maker Nokia this month and the acquisition is expected to cement its presence in devices market. Apple has been suffering in stock markets this year due to lack of exciting products in the pipeline. The company stock witnessed massive decline after it announced Apple iPhone 5C this week.

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