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Microsoft is looking to counter low-cost Chromebooks running Chrome OS

According to Bloomberg, Microsoft will slash Windows 8.1 licensing fees by 70 percent for makers of low-cost (priced less than $250) computers and tablets. This means that licenses will now be priced at $15 instead of $50.
 
Microsoft has experienced slowing growth in the operating system market with Windows 8. As we reported earlier this month, sales of Windows 8 thus far have failed to live up to its predecessor, Windows 7.
 
In addition, customer reaction to Windows 8 has been tepid, forcing Microsoft to make changes to how users interact with the operating system via the already released Windows 8.1 and the upcoming Windows 8.1 Update 1.

 
On top of its own internal issues that it has to grapple with, Microsoft is also fighting another battle on the low-end of the PC market against Google and computers running Chrome OS. In fact, low-cost Chromebooks running Chrome OS were able to secure 21 percent of the U.S. notebook market during 2013.
 
While a license fee reduction for Windows 8.1 will cover the PC and notebook market, the next step may be to make even more drastic price cuts with Windows RT. The Verge reported in December that Microsoft could make Windows RT free to OEMs in an effort to combat iOS- and Android-based tablets.

Source: Bloomberg



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RE: That's great but...
By w8gaming on 2/22/2014 11:14:03 AM , Rating: 2
Problem is this. Comparison in the past:

cheap PC: fast CPU, big HDD, more applications, big RAM
tablet: slow CPU, small storage, less app, small RAM

however,

cheap PC: bad display, heavy, short battery life
tablet: nice display, light, long battery life, very portable

Nowadays, comparison looks like this:

cheap PC: fast CPU, big HDD, more app, bad display, heavy, short battery life, WiFi
cheap W8 tablet: ok CPU, flash storage, more app, nice display, light, long battery life, very portable, WiFi
chromebook: ok CPU, flash storage, less app, nice display, light, long battery life, WiFi
tablet: ok CPU, flash storage, less app, nice display, light, long battery life, very portable, LTE

There are more offering from MS now that competes better feature wise to cater for the mobile minded users. Lowering license fee makes it even more competitive. MS is really going to fight hard for its market share now. It is good that MS no longer thinks they can blindly copy Apple with its premium pricing strategy and expects they can come up on top.


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