While sources have suggested pricing for Microsoft's new Surface RT tablet will be around $300 for its Oct. 26 release at Midnight, today analysts are contradicting the rumored price point for the device, and suggesting that  it will most likely be priced somewhere between $400-$500, closer to low-end laptops.

Analysts believe Microsoft's cheaper Surface tablet, the RT, will not have a price tag comparable to the $199 Google Nexus 7.  Though Microsoft has yet to announce the official pricing for its Surface tablet, the cost of the RT version will reportedly be between $400-$500, excluding the smart cover/keyboard, and the Pro, out next year, should be priced between $799-$899, also excluding the smart cover/keyboard, according to Sameer Singh, an analyst at with Finvista Advisors, a mergers and acquisitions consulting group.

Singh was tired of waiting on Microsoft to release official numbers and has postulated his own estimate, based on former bill of materials calculations for devices like Amazon's Kindle Fire, Nexus 7, and Apple's iPad, then added a 25 percent to 30 percent markup to arrive at the $399-499 price range for the Surface RT.

For the RT version of the Surface, Singh's report lined up all of the components, including the display ($66.95), touch screen ($43.71), processor ($21), camera ($4.10), and battery ($25.74), for a total of $298.82. Add a $10 manufacturing cost, which bumps the direct costs to $308.82.

"Microsoft would be under considerable pressure to ensure that the Surface is priced in the same ballpark as tablets from OEM partners," Singh said. "Unfortunately, OEMs are also at a cost disadvantage," he said, since the companies need to pay Microsoft a $50-$65 licensing fee per Windows RT device.

"OEMs could cut some of the costs mentioned in the BOM above to boost margins (for example, they could use a cheaper casing), but Microsoft's hardware requirements could make steep cuts a challenge," he wrote. "Including the license fee, I expect the BOM of most Windows RT tablets to fall within the $300-$350 range."

The Pro version will likely retail for a much higher price, $799-$899, Singh said, with a similar gross margin of 25 to 30 percent. Based on the RT costs, the analyst estimated another $321.35 in bill of material components for the Surface Pro. The primary reason for the price increase is the $204 Intel Core i5 processor.

While this certainly contradicts a report released yesterday from pc-tablets.com, which used a Dummies.com contest as evidence to suggest the Surface RT would be priced at $300, it is much more in line withthe broad price point suggested by Microsoft CEO Steve Ballmer recently.

"If you look at the bulk of the PC market, it would run between, say, probably $300 to about $700 or $800," Ballmer said to The Seattle Times. "That's the sweet spot."

In the same interview, Ballmer reasoned that lower-priced tablets meant less competitive features, and, in general, a lower-quality device.

"I think most people would tell you that the iPad is not a super-expensive device. ... [When] people offer cheaper, they do less. They look less good, they're chintzier, they're cheaper."

"If you say to somebody, would you use one of the 7-inch tablets, would somebody ever use a Kindle to do their homework? The answer is no; you never would. It's just not a good enough product. It doesn't mean you might not read a book on it...."

Microsoft said it does not comment on rumors or speculation, according to an email CNET sent to a company spokeswoman.

The Surface tablet will be released on or around the time Windows 8 becomes generally available on Oct. 26.

Microsoft plans to sell its tablets through permanent, and 32 temporary, "pop-up" stores around the U.S. and Canada.

Microsoft Surface "pop-up" stores

U.S.

Atlanta (Perimeter Mall); Aventura, Fla. (Aventura Mall); Beachwood, Ohio (Beachwood Place); Bethesda, Md. (Montgomery Mall); Braintree, Mass. (South Shore Plaza); Charlotte, NC (Southpark Mall); Columbia, Md. (Mall in Columbia); Denver (Cherry Creek Shopping Center); Durham, NC (Streets at Southpoint); Frisco, Texas (Stonebriar Centre Mall); Garden, City, NY (Roosevelt Field Mall); Glendale, Calif. (Glendale Galleria); Indianapolis (Fashion Mall at Keystone); Las Vegas (Fashion Show Mall); Miami (Dadeland Mall); Nashville (Mall at Green Hills); Natick, Mass. (Natick Collection); New York City (Time Warner Center -- The Shops at Columbus Circle); Oklahoma City (Penn Square Mall); Paramus, NJ (Westfield Garden State Plaza); Pittsburgh (Ross Park Mall); Portland, Ore. (Washington Square); San Antonio (North Star Mall); San Francisco (San Francisco Centre); St. Louis (Saint Louis Galleria); Tulsa, Okla. (Woodland Hills Mall); West Hartford, Conn. (Westfarms Mall); Woodlands, Texas (Woodlands Mall)

Canada

Burnaby, British Columbia (Metropolis at Metrotown); Edmonton, Alberta (West Edmonton Mall); Toronto (Eaton Centre); Vancouver, BC (Oakridge Centre)

Microsoft's website promises more locations will be revealed in the future.

Microsoft has not commented on the pop-ups, or included confirmation that they would sell the Surface RT.

Microsoft Surface tablet features

The RT sports an HD screen, which various sources have reported is anywhere between 1280 x 800 and 1366x768, while the PRO has a 10.6-inch Clear type Full HD (1920 x 1080) screen with 16:9 widescreen.

That means they are among the biggest tablets in the market. If you are not satisfied with the typical 10.1-inch tablet, you can go for the Surface tablet. Along with the touch keyboards with the device, you can turn the machine to a small notebook.

The Surface tablet comes with five Touch Covers. Well, you can pick up any one while purchasing the machine. Different from typical keyboards, the Surface keypads provide brilliant typing experience thanks to their touch-based surface.

The Surface tablets mount both front and rear cameras. The front camera, named life cam by Microsoft, makes the tablet perfect for video chatting through Skype or other services. Using the rear camera, you can capture images and video clips.

Microsoft puts forward better memory options with the Surface tablets. The device comes in 32GB, 64GB and 128GB options. The 128GB is available only with Surface Pro. Further, you can expand the memory using external memory sticks thanks to microSD card slot. That is, you can store enough data including music, software items and video in external clips.

The 3mm Touch Cover can be connected to your Surface tablet with a single magnetic click, so, now you can type text and send messages quite easily.

The Surface's tablet housing features a revolutionary kickstand. Along with fully functioning keyboard and track-pad, the integrated kickstand helps you place the gadget in both portrait or landscape modes.

According to Bloomberg, Surface will only be able to go online using a short-range Wi-Fi connection. This is a stark contrast to Apple's iPad 3, which has a 3G option, and a faster LTE connection.