Microsoft Surface Pro: where’s the margin?

Microsoft partners have given the Surface Pro tablet a luke-warm reception because they’re unable to make a margin on the device.

The Surface Pro, which runs an Intel processor and can, therefore, run standard Windows applications, is only available at retail and through the online Microsoft store. The retail and online strategy emulates Apple's sales strategy - but appears headed for the rocks. 

“I wouldn’t mind making a bit of margin if I could get it from Ingram,” said John Brooks, managing director of IP Works, a Microsoft partner.

“If it’s available through retail, then the best I’m going to do is getting frequent flyer points on the Amex,” he added.

Troy Adams, managing director of Betta Computers also said it’s going to be difficult to make margin on the device, while Jamie Warner, of eNerds, said it’s going to be hard to recommend the device to end customers based on its lack of channel support.

Still, all the Microsoft channel partners polled said there’s plenty of demand for mobility solutions out in the marketplace.

“We’re getting a lot of requests for tablets,” noted Brooks. “We have one client with field representatives wanting information on the road, and we’re looking into what sort of device would work well for them.”

Convertible devices are also making in-roads, said Adams. “They’ve got the dock, and all the ports, and then you can detach them and use them as a tablet,” he said.

Jamie Warner said he sees a bright future for tablets capable of running Microsoft Office. “There’s got to be a part of the market that needs that,” he said. “Office tends to define modern business.”

The Surface Pro goes on-sale today from retailers and the Microsoft online store. It starts at $999 for a 64GB version, with keyboards and other accessories available at a price.