Before PC demand dwindled, software giant Microsoft was happy with licensing its Windows software to computer makers. Now that we are taking the first steps into the post-PC era, the Redmond firm still wants its profit. But how do you charge a $50 per-tablet royalty fee when the device itself costs $199?
Enter the $499 Surface, says one independent analyst. While Google's Nexus 7 and Amazon's Kindle Fire both sell for $199, the Surface carries the much higher price tag because Microsoft stubbornly refuses to give up the 30 percent profit margin it's accustomed to receiving for Windows and Office software licenses...