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Microsoft and Blackberry cut Surface and Z10 prices

Microsoft dropped the price of the 32GB Surface RT to £279 from £400 in the UK, with the 64GB model's price down by the same amount to £359. And in the US, Blackberry has cut the price of the Z10 phone to as low as $49 with a contract - down from $199 four months ago.

Both firms have developed the devices to show off their latest software. And both have tried to compete with Apple, Google and Samsung on smartphones and tablets - with limited success.

"It's a big deal for both companies," Tony Cripps, a telecoms analyst at Ovum, told the BBC. "Competing with the Apples and Samsungs of this world is tough, and it's a difficult climate to put out high-end products when the market is so dominated by a couple of players."

In the US, the cheapest Surface tablet went down to $349 (£230) from $499. Blackberry in particular is battling to revive its share of the smartphone market with the touchscreen-only Z10, which shows off its new BB10 operating system.

Users can get the Z10 through US carriers AT&T and Verizon Wireless, for $99 with a two-year contract, but the phone costs $49 with a contract at retailers Amazon and Best Buy.

It is not clear whether the price cut has been implemented to people looking to get the phone on contract in the UK.

Source: BBC News

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