Microsoft is planning to sell its Surface tablets in India for Rs 7,500-10,000 each and it wants to use the money to fund its expansion into India.
In November last year, Microsoft India said it planned to sell Surface tablets for Rs 12,000-20,000, with the company seeking to use that money to build a network of more than 3,000 Indian retail stores across the country.
That network is expected to start by the end of 2019.
Microsoft also has plans to launch Windows RT, an operating system which runs on tablets, in India later this year.
However, Microsoft’s plans to sell the Surface tablets have raised eyebrows from both domestic and international investors.
Earlier this month, the Mumbai-based investment firm DST Global Partners, which holds about 20% of Microsoft India, said it was “very concerned” by Microsoft’s “very aggressive” move to sell tablets in the country, which is the world’s third-largest tablet market.
“The company has decided to go in a different direction than the previous approach, which had been to sell a smaller number of Surface tablets.
The company is now selling the devices through its own store, which has no presence in India.
The reason why the company is targeting the Indian market at this stage is because it feels it has a better chance of taking advantage of the market for a higher price.
As the market is still quite saturated, it would be premature for the company to try to sell those devices at Rs 10,000 to Rs 15,000,” said DST managing director, Ankit Jain.
Mumbai-based venture capital firm DTH Global Partners is also planning to invest in Microsoft India in the coming days.
(With inputs from PTI)