Microsoft helping manufacturers compete with Chromebooks

Don’t get too excited — they are dropping the price on windows 8.1,  but only for manufacturers of low end hardware.   It should still eventually translate into lower prices for end-users.

Microsoft confirmed that they plan to cut the price of Windows 8.1 by as much as 70% for the makers of lower-end hardware.   Their hope is the price cut will allow manufacturers to drop the price of lower-end tables and laptops in order to complete with the likes of Googles Chromebook.   It currently looks like Microsoft plans to allow manufacturers who sell hardware devices that retail for $250.00 and less,  to purchase Windows 8.1 for $15.00 instead of the normal $50.00.   While a $30.00 difference doesn’t sound like a lot — with margins already very low in this low-end area,  every dollar counts.  Whether this translates into savings for consumers or not waits to be seen — thus far this appears to be good old fashioned competition bringing consumers more choices at more price points.

More reading on the subject:
http://www.bloomberg.com/news/2014-02-22/microsoft-said-to-cut-windows-price-70-to-counter-rivals.html
http://www.reuters.com/article/2014/02/22/us-microsoft-windows-idUSBREA1L0WS20140222
http://www.dailytech.com/Report+Microsoft+to+Cut+Windows+81+License+Fees+by+70+for+Budget+PC+Makers/article34381.htm

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