Microsoft's most loyal users ask for Surface trade-in program

One of the most common questions posed to Microsoft's Surface team Monday was whether the company would buy back used tablets so that customers could upgrade to the newest models set to ship in a month.

The Microsoft developers, engineers and program managers who hosted a Reddit "Ask Me Anything" chat Monday afternoon didn't ignore the buyback questions, but had little to offer as an answer.

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For two hours Monday, the Surface team, led by Panos Panay, the executive who heads the group and who earlier in the day introduced the new Surface 2 line to reporters and analysts, took on Reddit readers in a wide-ranging online Q&A.

While Panos and others from Microsoft revealed a few news nuggets, notably that the company will launch Surface tablets early next year that can connect to mobile data networks, one issue that came up time and again was about a first-generation Surface trade-in program.

One of the first questions during the two-hour chat session was on just that topic.

"Any news on a potential trade-in scheme for current Surface RT/Pro owners to get money off the new devices?" asked someone identified as "Exilify."

Others jumped on the idea. "I'd love to shell out some for [Surface Pro 2] if I had a good incentive," said "johnlennin," joining the chorus. "Dealing with eBay and Craigslist would be a pain ... I hope you guys consider it and if so announce it soon."

Some argued that they should be rewarded for being early Surface adopters who jumped on the bandwagon while others dissed the platform.

"Would love to see a trade-in program for all of us first movers for [Microsoft] products (family has Nokia Lumias, etc.)," wrote "hoosiers99" during the AMA. "My Surface RT has been greatly devalued by both price and a new version available in less than a year. Microsoft owes its most loyal buyers and first movers a quality trade-in program."

Such arguments aren't unusual amongst technology-buying consumers, especially when a new product replaces one they recently bought, or a company sharply lowers prices. In 2007, after Apple dropped the price of the original iPhone from $599 to $399, those who had already bought the new smartphone complained loudly, saying that they had been penalized for being first.

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Microsoft kicks off iPad buyback deal in latest effort to juice Surface sales

Microsoft will pay at least $200 for used iPads made by rival Apple, and in return issue credit that customers can use to buy one of the company's Surface tablets.

On its Microsoft Store website, Microsoft outlined the buyback deal: It will accept "gently used" iPad 2, and third- and fourth-generation iPads -- the latter two models launched in 2012 -- pay a minimum of $200 for each tablet, and issue the funds as a gift card good for purchases at the Microsoft Store.

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Customers must bring their used iPads to a Canadian or U.S. Microsoft retail outlet -- the program's not supported online -- where a sales person will evaluate the tablet and decide on the dollar amount. Microsoft has approximately 70 stores in the U.S.

Apple's 7.9-in. iPad Mini is not eligible for trade-in.

"Microsoft Store gift-card value ... is subject to Microsoft's discretion and manager approval," the website said. "All trade-ins are final. Limit 1 per customer."

Because the buyback program isn't available online, it's impossible to tell what Microsoft will pay for an iPad before going to a store. Re-commerce vendors such as Gazelle and NextWorth pay between $150 and $240 for a working 16GB Wi-Fi-only iPad, with the lower value for the 2011 iPad 2 and the upper-end for the newest fourth-generation "Retina"-equipped device.

Buyback companies pay more for iPads with more storage space or those equipped for accessing the Internet over a mobile carrier data network.

They also pay cash for the Surface RT and Surface Pro tablets made by Microsoft. NextWorth quoted $187 for a 32GB Surface RT and $338 for the entry-level 64GB Surface Pro, or 54% and 43% of the list price, respectively. Microsoft's tablets start at $349 for the Surface RT, the struggling model powered by Windows RT, a subset of the more powerful Windows 8 that can run only so-called "Metro" apps. The Surface Pro, which relies on Windows 8 and can run legacy software like the desktop version of Office 2013, starts at $799.

The Redmond, Wash. company has cut prices of both models in the last two months to account for over-optimistic inventory plans and to clear the decks before Sept. 23, when it will unveil new models for the holiday selling season.

The resulting gift cards from an iPad trade-in do not have to be used for the purchase of a Microsoft Surface, but can be redeemed for anything Microsoft sells in its stores, including third-party PCs.

The deal also offers a call for action to iPad owners who have been swayed by Microsoft's television campaign that compare various features of the Surface RT with the 9.7-in. iPad, which starts at $499 with 16GB of storage space.

Microsoft's iPad buyback program expires Oct. 27. Apple is expected to roll out new tablets this year, and if it follows last year's practice -- when it also unveiled a new iPhone in September, as it did earlier this week -- the most likely introduction date is Tuesday Oct. 22.

Gregg Keizer covers Microsoft, security issues, Apple, Web browsers and general technology breaking news for Computerworld. Follow Gregg on Twitter at @gkeizer, or subscribe to Gregg's RSS feed . His email address is gkeizer@ix.netcom.com.

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Microsoft sets $100 Surface Pro discounts in stone

Computerworld - Microsoft yesterday made permanent the $100 price cut to its Surface Pro tablet that it ran as a temporary sale through most of August.

Surface Pro devices rely on Windows 8 Pro and Intel processors, rather than the stripped-down Windows RT and lower-powered ARM processors of the Surface RT. Surface Pro tablets can run traditional Windows software, often called "legacy" software, like the full-featured Office 2013 productivity suite.

Sale prices were first unveiled Aug. 4 and were to run only through Aug. 30, or until supplies lasted. The discounts were available only in the U.S., Canada, China and a few other markets.

According to Microsoft, the Surface Pro permanent prices will be the sales prices: $799 for the model with 64GB of storage space, $899 for the one with 128GB.

Touch Cover prices will start at $79.99, $40 off the former price, and Surface RT-Touch Cover bundles, which were also discounted, will start at $399, $50 lower than originally. The more keyboard-like Type Cover, however, will remain $129.99.

The cheaper prices will be extended to all markets where Microsoft sells the Surface.

"The customer response to recent Surface pricing and keyboard-cover promotions has been exciting to see, and we are proud to begin rollout of Surface Pro, Touch Cover and Surface RT bundles at even more affordable prices starting August 29," a Microsoft spokeswoman said in an email.

Late Thursday, however, the Microsoft Store did not show all the new prices.

The Surface Pro discounts followed even more aggressive Surface RT price cuts in July. Then, Microsoft slashed the price of the Surface RT by up to 30%, reducing all models by $150.

Although Microsoft is expected to unveil new Surface tablets this fall, it's had a hard time unloading the first-generation inventory. For the quarter that ended June 30, Microsoft took a $900 million charge against earnings to account for excess stock of the Surface RT, and unspecified components and accessories.

According to one analyst, that write-off was probably the precipitating event that pushed Microsoft's board of directors to shove CEO Steve Ballmer out the door.

Microsoft has also heavily discounted the Surface RT in offers to schools, and given away thousands of the tablets at various conferences this year.

The Redmond, Wash., company could revert to the earlier, higher prices with new models later this year, but that seems unlikely considering the difficulty it's had selling its tablets. For the period October 2012 through June 2013, Microsoft recorded just $853 million in revenue from its first foray into computing devices.

A 32GB Surface RT with a Touch Cover now costs $399, or 33% less than the price when the tablet debuted last October. The entry-level Surface Pro with a Touch Cover now runs $878, or 14% less than in February, when the more capable tablet-notebook hybrid launched.

Microsoft's August sale price for the Surface Pro has become the permanent price.

This article, Microsoft sets $100 Surface Pro discounts in stone, was originally published at Computerworld.com.

Gregg Keizer covers Microsoft, security issues, Apple, Web browsers and general technology breaking news for Computerworld. Follow Gregg on Twitter at @gkeizer, on Google+ or subscribe to Gregg's RSS feed . His email address is gkeizer@computerworld.com.

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Microsoft Surface naming debacle about to get worse

Have you ever had a helluva time explaining to an experienced Windows user that the Surface Pro runs Windows but the Surface RT does not? If so, hang onto your hat -- just when you thought it couldn't possibly get any worse, it looks like Microsoft is taking a swift dive into the shallow end of the gene pool with its Surface branding.

For several months, Tom Warren at the Verge has been using the name "Surface 2" as a code name for the next version of the Surface RT. I assumed it was internal shorthand, used by the dev teams to refer to Surface RT 2 or Surface RT 8.1 -- or whatever Microsoft would end up calling its son of the deservedly maligned non-Windows tablet.

Imagine my surprise when I read Aaron Souppouris's story on the Verge yesterday that says, "Microsoft's Surface 2 could drop the 'RT' moniker." Apparently AdDuplex has been sifting through its data on recent website hits, and came up with many that say "Microsoft Corporation Surface 2."

Paul Thurrot, in his SuperSite for Windows blog, examined the same AdDuplex data and made a startling assertion. He says (with no attribution I can find) "the Surface RT replacement... will simply be called Surface 2, and the ... Surface with Windows 8.1 Pro ... will be called Surface Pro 2."

Paul's a careful fellow with a lot of contacts inside the Windows team, and the statements are definitive. It certainly sounds like Microsoft has settled on names for at least two of its new tablets: Surface 2 and Surface Pro 2.

If you have to deal with everyday Windows users, be afraid. Be very afraid.

Sometime in October, the Best Buys in the world will undoubtedly have five or six Surfaces on sale. Their names, if these pundits are right, will be Surface RT, Surface Pro, Surface 2, Surface Pro 2. I, for one, would also expect a Surface Mini or two. Heaven only knows if the little guys will run Windows 8.1 RT (or is it Windows RT 8.1?) or Windows 8.1, either Standard or Pro.

See where I'm going with this? Picture a guy who's gone to Best Buy to pick up a Windows tablet. He can choose from a Surface RT, Surface 2, Surface Pro, Surface Pro 2, or (presumably) a Surface Mini. Two of them run Windows. The others probably don't. For sure, the "2" versions are better than the "1" versions. But other than that, how's a customer -- an experienced Windows user -- supposed to know the difference?

As for the distinction between Windows RT running on some machines and Windows 8.1 Standard or Pro on the others: By the time the Best Buy clerk gets done explaining the difference -- no doubt with a PowerPoint presentation -- our mythical customer is already dreaming about a Nexus or iPad.

Hey, Microsoft. If you don't rename the Surface RT/2 to something that distinguishes it from the machines that run Windows, you won't have to worry about it very long. Better set aside another $900 million right now.

This story, "Microsoft Surface naming debacle about to get worse," was originally published at InfoWorld.com. Get the first word on what the important tech news really means with the InfoWorld Tech Watch blog. For the latest developments in business technology news, follow InfoWorld.com on Twitter.

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