Microsoft just made permanent it price-cut promotion for its Surface tablets. On Thursday, Aug 29, the Surface Pro had a new starting price of $799 or $100 less.

The Touch Cover is now cheaper by $40 to start at $79 and Limited Edition Touch Covers begins at $89.

The Surface RT bundles now sell $50 less at a starting price of $399.

Microsoft said the phased approach to pricing adjustment aims to meet customer demand and retailer expectations, which is a euphemism for poor sales that discounts must be given to move the devices off the store shelves.

"The customer response to recent Surface pricing and keyboard-cover promotions has been exciting to see, and we are proud to being rollout of Surface Pro, Touch Cover and Surface RT bundles at even more affordable prices starting August 29," a company spokesman said.

The original price cuts were supposed to begin Aug 5 and end Aug 30 or until supply lasts, but the reduced prices were only for buyers in the U.S., Canada, China and a few selected markets.

The permanent price cuts, however, will cover all markets where Microsoft sells Surface products.

Microsoft initially cut in July the price of the Surface RT by up to 30 per cent, while prices all models were slashed by $150.

The permanent price cut is part of Microsoft's strategy to reduce its inventory of first-gen Surface gadgets as it prepares to under new tablets in fall.

Due to its high inventory of the first-gen Surface devices, Microsoft took a $900 million charge against the company's earnings in the June 2013 quarter.

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