Explaining Microsoft's Surface pricing

Device economics might offer an explanation for Microsoft's otherwise perplexing Surface strategy but the question remains how many units can it possibly sell to maintain its revenues?

Early data shows that the PC market has not experienced a “pop” from Windows 8. Market watchers have been anticipating this pop since every previous version of Windows has led to a surge in shipments. PC vendors have also been hoping for this to lift their volumes. Volumes have been stagnant for a while, as the following chart shows:


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