Money Matters - Simplified

Smaller devices with Windows 8 set to get cheaper

Price cut, an oldest trick to boost the sales of something which is not able to create a spur among consumers is what Microsoft will try now, to boost the sales of PC with Windows8 platform.

The news was first published in Taipei-based Digitimes and the Wall Street Journal which indicated that Microsoft will lower the price of Windows 8 for PC makers. This would surely result in cheaper rates of Windows 8 tablets and hybrids.

The news of lower prices of hybrids and tablets was confirmed by IDC's Bob O'Donnell. He said "It lowers the vendors' total cost, which allows them to get to a lower price point.”

Incentive for small Windows 8 devices

Not only this, Microsoft has also given yet another reason of smile to all the PC makers. The tech titan has offered another lucrative incentive for small Windows 8 devices.

Microsoft declared that all products with display size of less than 11 inches, will get a discount plus a free copy of Office 2013. This declaration will surely result in two major changes. One is the lower cost of smaller touch displays and also there will be increase in demand for smaller tablets.

Supply and demand theory was emphasized by Bob O’Donnell. He said "The manufacturing yield for [larger] touchscreens is very low, which makes the cost high. While the [smaller] 10- and 11-inch inch class touch-screen supply is better, this allows lower prices”.

O'Donnell also emphasized that Microsoft has missed the wave rising towards 7-inch class tablet that is on a crest with Apple’s iPad Mini and Android-based tablets like Samsung's Galaxy Tab and Google's Nexus 7.

Challenge faced by Windows 8

The major problem faced with Windows 8 in today’s date is that it doesn’t work with those smaller displays. But Windows Blue under discussion may resolve that issue. The said OS is expected to overcome the shortfall of Windows 8 and is expected to accommodate tablets with screen sizes in the 7 to 8 inch range.

Thus, according to O'Donnell, clubbing all these factors together one can expect much more aggressive small Windows 8 touch based products.

Craig Stice, an analyst at IHS iSuppli, said Microsoft can "better compete for the consumer's dollar against popular media tablets."

And all these efforts by Microsoft are only because Windows 8 has not been able to create a mark among users and are just aren’t selling well. O’Donnel phrased the entire situation and said that "The problem is the PC market is horribly stalled so they have made some pretty dramatic moves to reignite the market.”

Microsoft did not comment on the same.