People with knowledge of the matter reported that Microsoft Corp. plans to lower the price of Windows 8.1 for low-cost computers and tablets manufacturers by 70% in an attempt to overcome more affordable competitors such as Google Inc.s Chromebooks.
The people familiar with the plans, who asked not to be identified because the more specific aspects of these intentions are still private, revealed that the makers of low-cost computers and tablets will be charged 15 dollars to license Windows 8.1 and preinstall it on devices that are being sold for less than 250 dollars. The cost is considerably smaller than the usual 50-dollar-fee. According to those people, the discount will involve any products that meet the price limit, no matter what their type or size is.
During the last quarter, the computer industry posted its biggest annual decline ever. At the same time, the revenue of Microsoft’s devices and consumer licensing division, which also includes Windows software, decreased due to facing the fierce competition of the companys most serious rivals – Apple Inc. and Google Inc.
Cutting the price of its Windows software for PC manufacturers is considered a great opportunity for Microsoft to boost its share of the growing tablet market, which is estimated to about 80 billion dollars. The company may also use the discount in order to eliminate Chromebooks – the notebooks that run the operating system of Google Inc. Earlier in February, Satya Nadella was named by the company as Chief Executive Officer, tasked to accelerate the companys development and the introduction of new devices on the market.
One of the people familiar with the matter revealed that the products using the cheaper licensing will not have to go through hardware compatibility verification, a process known as logo certification. They also said that the devices are not required to be touch-screen compatible.
More than 200 million Window 8 licences have been sold since the operating system was first released for sale in October 2012, Microsoft announced earlier in February. Those figures however trailed Windows 7s performance.
Microsoft Corp.s shares rose by 0.61% on Friday to settle the session at $37.98, marking a one-year change of 36.82%. According to CNN Money, the 28 analysts offering 12-month price forecasts for Microsoft Corp. have a median target of $39.00, with a high estimate of $47.00 and a low estimate of $29.00. The median estimate represents a +2.69% increase from the last close.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
