In an Interview with the Seattle Times, Steve Ballmer has hinted towards where Microsoft Surface pricing needs to be. He also mentions a point on where he thinks Microsoft will be in 10 years. He stated, "a devices-and-services company." He also pulled out a couple of Nokia 920's! It's a great read so hit the source link at the bottom. The interesting answer about Surface pricing is quoted for you here.
The iPad has the largest share of the tablet market, but its soft spot, it seems to me, is the price.With the Surface, are you planning to compete with the iPad on price or on features?
We haven't announced pricing. I think we have a very competitive product from the features perspective. ...
I think most people would tell you that the iPad is not a superexpensive device. ... (When) people offer cheaper, they do less. They look less good, they're chintzier, they're cheaper.
If you say to somebody, would you use one of the 7-inch tablets, would somebody ever use a Kindle (Kindle Fire, $199) to do their homework? The answer is no; you never would. It's just not a good enough product. It doesn't mean you might not read a book on it....
If you look at the bulk of the PC market, it would run between, say, probably
$300 to about $700 or $800. That's the sweet spot.
Source: The Seattle Times