Reportedly, Microsoft is planning to cut the price of its much-awaited Windows 8.1 operating system by about 70% for makers of low-cost computers and tablets. Same report by Bloomberg claims that this is done to counter the products by its rivals like Google and Apple. Since the details are not yet made public, Bloomberg kept the sources anonymous.
For the products that cost less than $250, manufacturers would be paying $15 to license and preinstall Windows 8.1 update. Whereas usually manufacturers are charged $50 for the same purpose. Sources informed that this discount would be applicable to all Microsoft products in the limit of the said price. The reason for this is believed as its competitors-Apple and Google cut Microsoft’s revenue at devices and licensing division including Windows software.
Microsoft seems to be looking forward to accelerate growth and introduce new devices now under leadership of its new CEO Satya Nadella. The rumored licensing price cut may be a part of the plan. Microsoft may be planning to increase its share in PC market by providing incentives to PC makers. Comparing to Windows 7, sales of Windows 8 systems has been relatively slow since its launch 15 months ago. More than 240 million Windows 7 devices were sold in a year whereas about 200 million Windows 8 licenses are sold till now, as per data provided by Microsoft’s marketing head. It would now be interesting to see what this price cut would bring to Microsoft. Do share your thoughts on this in comments below.