DigiTimes reports Microsoft is outsourcing Surface tablets to Pegatron; expected prices above US$599

DigiTimes reports that its sources say that Pegatron, which is one of Apple's iPad manufacturers, has won the contract to manufacture Microsoft's Surface tablets. These sources also estimate that the price of the Surface for Windows RT, which will compete directly with the iPad, will be priced above $599, while the Intel-based Surface for Windows 8 Pro will be priced above $799. In both cases, the high prices may outweigh the appeal of the tablets' industrial design. In addition, Microsoft has said that the tablets will only be sold in its retail stores (of which there are 21, plus four more under construction,) and online. Without other retail outlets, it's highly unlikely that Microsoft can get the volume it needs to drop the tablets' prices enough to be competitive with Apple and other manufacturers.