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Microsoft Offers $200 Credit to Trade in IPads for Surface

September 14, 2013

Microsoft Offers $200 Credit to Trade in IPads for Surface

A preview Microsoft's new tablet SURFACE during the press conference in Milky Studios on June 18, 2012 in Hollywood, California. Photographer: Joe Klamar/AFP via Getty Images

In an effort to entice more consumers to buy its Surface tablet, Microsoft Corp. (MSFT:US) is dangling a new carrot.

The Redmond, Washington-based technology company on Sept. 12 e-mailed and listed on its website a promotion that includes giving credit worth a minimum $200 to customers who turn in “gently used” Apple Inc. (AAPL:US) iPads to its stores. The gift card is for Microsoft stores, and the company suggests upgrading to a Surface.

The promotion is good through Oct. 27 on the iPad 2, 3 and 4 models, Microsoft said.

Rich Adolph, a spokesman for Microsoft, said the intent of the initiative wasn’t necessarily a competitive one and was instead related to a recycling program. “This is part of a current recycle-for-rewards program,” he said.

Microsoft sold $853 million of Surface tablets in the fiscal year ended June 30, and took a $900 million writedown of inventory related to the product. The device, Microsoft’s first-ever computer hardware, is a mobile touch-screen computer introduced in October to compete with the iPad and tablets running Google Inc. (GOOG:US)’s Android operating system.

Windows sales have been besieged by poor demand for personal computers, which will face a 9.7 percent decline this year, steeper than originally forecast, according to researcher IDC.

To contact the reporter on this story: Dina Bass in Seattle at dbass2@bloomberg.net

To contact the editor responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net


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