In another indicator that Microsoft made a huge mistake producing the Surface RT tablet, the tech giant just cut the price of the $500 device by $150 to dispose of its inventory.

Staples, started to cut its price to $350 for the 32GB version on Sunday. However, the discount is only until July 20, said to be part of the retailer's weekly promotional sales.

Other retailers such as Best Buy and at the Microsoft Store are selling the 32GB and 64GB at $150 less, but don't offer price cuts on the $100 black Touch Cover or the $120 coloured cover.

The cut price announcement on Tuesday confirmed a previous The Verge report said that Microsoft will slash the prices by $150 of the 32GB and 64GB Surface RT tablet, which will bring down the price of the 64GB model to $450.

The price reduction is believed to be linked to Microsoft's plan to release 7- and 9-inch models of next-generation Surface RT tablets that will feature better specs such as the new 800 Snapdragon chip from Qualcomm to attract buyers.

A report in May by market research firm IDC said Microsoft shipped only 200,000 Surface RT tablets during the first quarter of 2013.

However, techies are warning consumer about not getting a real bargain despite the $150 price off because third-party hardware companies are abandoning Windows RT to focus on tablets that run Windows 8. Windows RT cannot install any desktop software such as iTunes, Photoshop, Dreamweaer and Chrome, but includes a free version of Microsoft Office 2013 and other basic desktop apps such as Calculator, Paint and Explore. Other apps compatible with it should be purchased at the Windows Store.

"Folks, put away your credit cards. Surface RT isn't a good deal at any price," Investors quoted blogger Paul Thurrot who described the tablet as just a piece of junk because it is "simply too underpowered to provide a satisfactory experience."

Here is how another techie views the Surface RT tablet.

RELATED STORIES