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Prices of Windows RT tablets drop, point to failure of OS

Agam Shah | April 3, 2013
Prices have dropped for Dell's XPS 10, Asus' VivoTab RT and Lenovo's IdeaPad Yoga 11

Prices usually drop if products are made in volume, or if there is poor demand, said Jack Gold, principal analyst at J. Gold Associates.

"I think you're seeing discounting based on user demand. I never thought RT was going to be that successful," Gold said.

Windows RT was doomed right from the start, and devices with the OS had no chance to compete with the more established Apple iPad and Android tablets, Gold said.

A price drop may be an attempt to stimulate demand, said David Daoud, research director at IDC.

"A lot of it is pre-positioning for the summer season," Daoud said. "Do price reductions stimulate demand? Sure they, do, in the right time."

A price drop could help clear out inventory ahead of the back-to-school season, when new devices typically ship, Daoud said. Companies also want to get rid of excess inventory as it can be costly to hold products for long.

The analysts acknowledged that Microsoft did little to spread awareness about Windows RT. People could not understand the purpose of the OS as it was incompatible with existing Windows applications, and it wasn't a complete operating system like Windows 8.

"RT will fade away over time," Gold said. "It's not a full Windows 8 experience. That said, why wouldn't I spend more and get a full Pro version of the device?"

 

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