Microsoft Corporation (MSFT), Apple Inc. (AAPL): We Pay You

This week, Microsoft Corporation (NASDAQ:MSFT) announced that it will give users a minimum $200 Microsoft Store gift card for a used iPad 2, 3 and 4. It’s an odd, if not desperate, attempt to lure users away from Apple Inc. (NASDAQ:AAPL)‘s iPads to Microsoft’s unpopular Surface tablets — and it won’t work.

We pay you
According to Microsoft Corporation (NASDAQ:MSFT), the deal started on Sept. 5 and goes until Oct. 27, and timing is anything but accidental. The company is expected to release the new Surface 2 tablet line on Sept. 23, and this deal is aimed at both moving old inventory and trying to get customers interested in the new tablets.

With a minimum iPad trade in of $200, customers could come close to the Surface RT price of $349. Microsoft Corporation (NASDAQ:MSFT) didn’t specify what the maximum gift card amount would be, but it said on its website that “Microsoft Store gift-card value will be equal to trade-in value, and is subject to Microsoft’s discretion and manager approval.”

Maybe Microsoft Corporation (NASDAQ:MSFT) failed to read up on the J.D. Power and Associates survey released at the end of April, showing that the iPad is No. 1 in customer satisfaction. Apple Inc. (NASDAQ:AAPL) beat out Amazon.com and Samsung to win the top spot — twice. In a press release by J.D. Power, the company said, “For the second consecutive study, Apple ranks highest among manufacturers of tablets in overall owner satisfaction.”

Good luck, Microsoft Corporation (NASDAQ:MSFT).

Apple Inc. (NASDAQ:AAPL) shipped more than 14 million iPads in the second quarter of this year alone — with Samsung in second with 8 million — and ranks as the world’s top tablet vendor by shipments. Handing out some gift cards isn’t going to change any of that.

A better plan
A good marketing campaign is one that convinces customers why one product is a better buy than another. But Microsoft Corporation (NASDAQ:MSFT)’s strategy as of late has been to bash the iPad in commercials and now to simply pay people not to use it. Both show Microsoft’s desperation.

The company needs a better tablet product to really compete against Apple Inc. (NASDAQ:AAPL) and its competitors. With a Surface 2 and Pro 2 announcement expected later this month, Microsoft Corporation (NASDAQ:MSFT) will have another chance to prove it can tackle tablets head-on. Microsoft investors need to see solid Surface sales from the company and a commitment to developing a cohesive operating system across the desktop, tablet, and smartphone platforms. With its tablet OS market share at just 4.5%, Microsoft may be wise to focus more on maker better products and less on marketing gimmicks.

The article Microsoft’s New Tactic: Pay People Not to Use iPads originally appeared on Fool.com.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple and owns shares of Apple and Microsoft. 

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