Microsoft has quietly cut the price of its entry-level Surface tablet computer by some 30 per cent, after surveys indicating sluggish sales.
The Surface RT tablet was being sold for as low as USD 349 for US customers on the Microsoft website today, down from the introductory price last year of USD 499.
The move comes amid a price war for tablets and a flood of new devices on the market.
Amazon has slashed prices of its Kindle HD tablets to as low as USD 169 in the US and 139 pounds in Britain, while Barnes & Noble has cut the price of its Nook to as low as USD 129, and has announced plans to outsource production of its tablets.
Microsoft introduced its Surface last year at a premium price, promoting the device as a substitute for a personal computer with an attachable keyboard.
But a survey by the research firm IDC estimated the company sold just 900,000 units in the first quarter, in a global market of some 49 million.
Microsoft previously cut the price of the Surface as low as USD 199 for education buyers.