Microsoft buying used iPads

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Microsoft buying used iPads
Milos Zivic

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Milos Zivic

Sep 15, 2013

Microsoft has decided to buy iPads with coupons of up to $200 in order to increase sales of their new Surface Pro 2.

Hello guys, this is another of my opinions about the technology markets and things that are going on there. Now, this is not about any new thing about technology, but it is technology related. It is well known that there are companies that offer their new products cheaper if you give them old ones that you already used. You could say, that is a good thing for both, company and buyers. But, by me, this is another very risky move by Microsoft, because they have decided to buy another company's old phones. 

Microsoft has decided to buy old iPads of third and fourth generation, and, they are paying really well. Actually, they are not paying for that, but, they are giving coupons in change of your old iPad. Why would someone do something like that, you might ask. 

But, the main reason is that the release date of Microsoft Surface Pro 2 is approaching and that they need new customers. Good thing for customers is that this way, they can buy some new devices with a discount of $200. Of course, cool devices by Microsoft. But, will it pay off, will they sell enough products to cover their expenses? What will they do with those devices? Recycle them? Or just throw them away? Only people in Microsoft know that. And, one more thing, if Microsoft is ready to reduce prices of their products for $200 by offering coupons, the question is, how large is the margin that Microsoft is charging? What is the production cost of their devices? Surface Pro 2 is announced to be somewhere around $700-$800. So, their production costs could be $400-$500, or even lower. 

There is another possible thing, that Microsoft will be selling their products under the production price, only to beat their competition. That wouldn't be a good thing if you ask me. 

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