Microsoft slashes tablet prices amid Surface 2 rumours

Price of vendor's RT device cut by 30 per cent to £279

Microsoft has shaved up to 30 per cent off the price of its Surface RT tablets amid speculation of a Surface 2 device coming to market before the year is out.

The software giant, which is seeking to re-invent itself as a devices and services firm, cut the 32GB tablet's price by 30 per cent from £399 to £279, while the cost of a larger, 64GB device dropped eight per cent from £479 to £439.

At last week's WPC in Houston, Microsoft gave the 16,000 partner attendees a sneak peek at its FY14 innovation road map, which promised updates for both the Pro and RT tablets.

The channel has speculated that Microsoft is bringing out an iPad Mini rival in the form of an 8in Surface 2 tablet, but the vendor said at the time that there was "no announcement" to share.

Microsoft held a 1.8 per cent share of the tablet market in Q1 after shipping 900,000 units during the quarter, according to IDC. Market leader Apple shipped 19.5 million iPads in comparison, raking in 39.6 per cent market share.

By the end of September, a select number of UK resellers will be able to sell the Surface tablets as part of its commercial channel pilot.

Microsoft said in a statement that the price cut reflects what it claims is the positive reaction it has had to the devices since its launch and the success of pricing promotions over the last two months. It added that its goal is to "help more customers experience all the benefits Surface RTs have to offer".