Some companies, like some people, are bizarrely stupid – They refuse to heed the lessons of past errors.

Microsoft’s first generation Surface tablets (both the Surface RT and Surface Pro) were a mega-disaster.

So big a disaster that Microsoft incurred a loss of nearly a billion dollars in its last quarter to account for unsold inventory of Surface RT.

Obscenely high prices, few apps and poor battery life (Surface Pro) killed the two Surface tablets.

Height of Stupidity

Now Microsoft has launched upgrades to the two Surface tablets with modest improvements under the hood.

Surface 2 starts at $449 (32GB) and Surface Pro 2, mon dieu, still begins at $899 (64GB).

And the prices don’t include accessories like keyboard ($130-$200), docking station ($200), Arc Touch Mouse ($70), car charger ($50), or wireless adapter ($60).

Surface Pro 2 – $899 Without the Keyboard

Consumers have made it clear that the only tablets they’ll pay a premium for is the iPad with its gazillion apps.

Android and Windows tablets will find favor with consumers only if their pricing falls sub-$300.

That’s the reason high priced Android and Windows tablet vendors are ultimately forced into discounting leaving the manufacturer with little or no profits.

The second generation Surface tablets should ship on October 22.

No, I don’t expect to see any lines or read reports that the Surface upgrades have sold out a la the iPhone 5s. 😉

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