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Microsoft Said To Cut Windows Price 70% For Low Cost Devices
kc123 writes with this except from Bloomberg News: "Microsoft is cutting the price of Windows 8.1 by 70 percent for makers of low-cost computers and tablets as they try to fend off cheaper rivals like Google's Chromebooks, people familiar with the program said. Manufacturers will be charged $15 to license Windows 8.1 and preinstall it on devices that retail for less than $250, instead of the usual fee of $50. The discount will apply to any products that meet the price limit, with no restrictions on the size or type of device."
Now all we need is Windows retail to be a more realistic price too.
If they pay me $15, I'll take a copy. Don't want it on any device I own or use though...
On y va, qui mal y pense!
One unwanted side effect I can see coming from this, is that most Windows devices will become either very cheap (to meet the price guideline) or very expensive. If you build a device costing $500, the cheaper devices are not going to be that much lower in spec than you because they didn't have to eat a more expensive Windows license.
When I read this story, I was excited because I thought it meant cheaper Windows for home users. I wouldn't mind running Windows 8 in Parallels on my mac, or even dual boot to it to play games. But the price for consumers is just too high for me to do that. They could get a lot of casual Windows sales and remain relevant but for some reason, they just don't seem interested in doing so.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
MSFT, the only company that actually charges money for a consumer OS.
Linux will inherit the Earth. Tremble, M$ Office paperclip.
They chased Google with Bing. They've chased Apple with the Zune, their music store, and their Windows Phone. They put the name Windows on everything - their cloud, their phone, their ARM tablet, and their regular PC OS, even though all those products are different. They are a MESS. Good luck to Satya - he will need it.
Microsoft Becoming Desperate to Sell Window 8.1
Microsoft Losing Badly in Tablet Market
Chromebooks Out of Microsoft's Extortionary Reach
Microsoft Discovers Battery Life Is Very Important On Tablets
Microsoft Is Getting "Scroogled"
Microsoft Just Got the Facts
Anons need not reply. Questions end with a question mark.
I would love to get this price break just to refurbish and resell systems. Would be nice to see PCs on eBay with a modern OS.
In my opinion, they _so_badly_ want to be the One Ring.
I hope I live to see the day they are just a historical Wikipedia entry.
Uh, Linux geek since 1999.
This seems to need a $15 upgrade option for people already running windows7 show ant to upgrade. Just sayin'!
If Intel starts packaging cheap Windows with their CPUs then this would be a major boon to the home PC builder demographic.
I would love to see Windows on BeagleBone Black. It would show that even cheap devices get the love of Windows and open the Windows store. Also it would look great for kids to experiment with Windows on a $45 computer. At the very least Microsoft could release that micro-kernel version of Windows for hobby/development devices and open up Visual Studio for development.
You say things that offend me and I can deal with it. Can you?
I think most people would pay 15 just to not have to downgrade to 8 if they were forced to make a choice.
What are you on about? We're not talking about Unix.
"While the regular Windows list price was $50, some of the largest global computer makers paid closer to $30 after incentives such as marketing funds provided by Microsoft, the people said."
The article says there won't be any additional discounts beyond the $15 for those products, but this still means a number of manufacturers will be paying closer to $30 for other products.
It participated in the spectrum auction and made the telcos pay near market rates. It bought dark strands of the fiber network after the market crash to protect itself from local last mile ISPs from holding it for ransom.
It talked to WhatsApp, made an offer of 10 billion with lots of poison pills. It set the floor at 10 billion, leaving all the smaller players aside. It knew Facebook was despo and will buy WhatsApp, but it boosted the price and made Facebook pay dearlym 35% of cash on hand!. Please disregard the 19 billion dollar figure. That is based on overpriced FB stock price. That Facebook will be strapped for money in the coming year for other aquisitions is the key victory for Google.
WhatsApp's 450 million users includes millions who create new accounts every year when their old free for the first year accounts expire. Those users are penny, nay, paisa pinchers who use WhatsApp to avoid international texting charges between India and the Gulf countries and Singapore. They use WhatsApp to broadcast their texts to N recipients paying 1 outgoing text charge. In India incoming calls and texts must be free by law. Only the sender pays. 2 dollar per user? You can't chisel 2 rupees out of them. Anyway WhatsApp has no advantage when it comes to smartphones. Its explosive growth was due to it being the portal to the intenet for dumb phones via SMS. That market is done.
Unorganized linux tried to scare Microsoft with netbooks. Microsoft hit back and evenutally killed the netbooks market, though it had to extend XP's life to do so. But Google resurrected the netbooks markets, and is forcing Microsoft to engage in price war again. Given the drop dead simplicity of the Chromebook, and low cost by eschewing the bells and whistles of the tablet market, it is very difficult to see anyone make any serious money off them. But it hampers the others from raising their profit margins.
Google plays the strategic game stupendously well.
sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
So, someone comes out with a tablet that costs $249, and then has a means for upgrade to offer better performance, like added RAM? Maybe it is something that is unlocked?
At $15, the price is still $15.01 too high for Windows 8.
I just browsed a bit, and I thought to myself, what is this site? I like it, it is easy to navigate and looks nice. Next thing I know I look up and see the beta logo.
And I've never seen anything worth paying them for.
Except maybe Windows FLP, which is not for sale for any price to anyone not having corporate licenses and its use is discouraged by Microsoft. Windows Embedded 8 is a fucking pig and is fucking useless. It's within 5 percent of the size of a full version of 7 or 8 and all of the resource use as a full version of 7 or 8.x. Why bother?
"Small devices?" According to who? Microsoft's idea of a small device isn't anyone else's that I know of.
Sure, I'll take all the DVDs that Microsoft is willing to send me. I need more beer coasters.
--
BMO
Not to question Microsoft's business model, but why are they doing this. Windows is their core product. Everything they do is based on people buying windows and then office. This is ".com" logic, where they take a profitable product and then make a business model that is cheaper and makes no money. I don't use Microsoft products unless I have to, but this is not a recipe for success. Why don't they make something that people want? Is this a way to inflate license sales of windows 8 to consumer goods because manufacturers will buy more licenses for the same money?
...to test the Windows performance of Java programs I write on Linux.
Did you have Windows For Pen, version 1.0? Came out after Windows 3.1 and before Windows for Workgroups.
I was surprised that Microsoft was charging $50 per copy to the OEMs. That's quite expensive.
Stop being assholes.
$15.00 across the board, you want fater adoption, let us at home pay $15 for it. Because at that price point, I'll give it another shot, hell I'll even tolerate some of the issues at that price point.
At $199 no way in hell.
Do not look at laser with remaining good eye.
What's the point of RT tablets, now full blown Windows OS is actually much cheaper for manufactures than opting for the crippled RT. Yes, I know at this time, only x86 chips have the option of RT or Windows on tablets, and ARM devices are artificially restricted to RT by Microsoft, but Intel is currently selling tablet suitable Baytrail parts for NEGATIVE money (yes, that means Intel actually PAYS the company to build the tablet using an Intel SoC).
With Baytrail less than FREE, and with Windows 8.1 selling for a song when used on a tablet with an ARM SoC competing CPU (ie., NOT a laptop class ULV part from Intel), it is cheaper for tablet manufactures looking to support Microsoft to ONLY build Windows tablets, and of course, Windows tablets also have the RT interface option if users wish to use that.
Now the questions is when and whether Microsoft will release Windows 8.1 for ARM devices as well. But with Intel currently paying for people to use Baytrail, no ARM device could compete with a tablet using x86 and running Windows. One must therefore ask whether Intel isn't currently subsidising these cut-price Windows OS sales by paying Microsoft even more billions. The decision NOT to release full-blown Windows on ARM two or so years back was only made by Microsoft when Intel handed over many billions of dollars to keep Windows an x86 exclusive.
We are rapidly approaching the moment when a very decent Windows tablet costs no more that 150 dollars. Such a tablet can have 2GB RAM, a four-core Baytrail, but Intel's integrated GPU is quite weak, and better made for non-retina displays. It is of interest, though, as to how long it will take the Law to catch up with Microsoft and Intel for selling their products massively below cost to artificially gain market acceptance. Is there anyone here stupid enough not to realise that if the Wintel duopoly gained traction in this market, it would reverse all price cuts just as soon as able?
Still comes with a horridly insecure browser integrated into the OS that is incompatible with their previous browsers and enterprise web apps and cannot be removed. Still prohibits preinstall of alternative browsers, search engines. Still prefers Outlook.com sign in. Is still Windows. Seems like they still have a few issues to work through.
Help stamp out iliturcy.
I was going to post the same thing but you laid it out perfectly. If you think about component costs in a $500 system, $35 buys you either better parts or something you wouldn't have otherwise, and like you say there is no margin on middle tier PC's.
That's why I think it will mean more focus on either $250- systems, or $1000+ systems.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Neither is he. Even UNIX allowed you to do anything you wanted.
This you do realize isn't like giving away limes or quecats which cost something to produce per unit. Microsoft doesn't spend more then the cost of printing a few windows license stickers plus patent fees which aren't too much if they don't include native mpeg2 and other expensive patents.
Also, the value of an OS are 1. what unique things does it offer 2. What market Share does it represent.
1. is obvious and could be anything really, even things like being a good free alternative, etc.
2. If you don't have market share you don't get developers and admins. Which means you don't have users because there is no software. Developers won't developer because there is are no users. etc. You need a strong enough number 1 to break this chicken and egg cycle. But this cycle can also break if someone steals your market share.
beside some scientific programs and gamers who actually want to use a os that do not have a build in ssh client? it's a joke and when you look at 8, well, no dvd or blu-ray capacity either, we are really going backward with this and gui is a complete joke. they need to seriously start working on usable os or this just may be a nail in the coffin.
They did the same with netbooks. Discounted to $15, then used the $15 price to force the OEM to reduce the specs. Once they got the specs to the point of garbage and sales started to drop off they raised the price a bit, rinse and repeat until the entire market is gone. That's what happened to netbooks, incredibly popular until MS deliberately destroyed the hardware requirements so that no on wanted them anymore. Everyone that bought a netbook and hated it? That was Microsoft ensuring they were underpowered pieces of garbage.
The best tricks are the old tricks.
I tried installing Irix on my SparcStation IPX and it just sat there and laughed. I guess I'll try my AIX install media next.
After using Windows 8.1 at work, all I can say is - I want my money back
You're doing it wrong. For pure Unix, you need to start with a SysV source license. It's a little more work that way, but the results should be more than worth it! :D
Of course, it might be a bit tricky to get your hands on one at the moment, since owner Novell had a tiny falling out with exclusive license reseller SCO. Still, you might be able to pick one up on the second-hand market. I understand that Daimler-Chrysler has one they're no longer using--at least according to their response to SCO's subpoena.
Google plays the strategic game stupendously well.
Google TV, Buzz, Google+, Nexus Q, Google Wave... etc. etc.
And ads are still 90%+ of the business...
You should try a career at revisionist history.
This space for rent.
I'll take Windows Phone 8 with the same kernel as the desktop over a crappy Android anyday.
True Unix is 3 decades old now.
SysV was published in 1984.
Time to move on.
I know this comment I am about to make might be unpopular for the older types set in their ways, but it is time to replace inet with an event driven system, trash X for Wayland, and modernize it.
True Linux beat the freaking pants off of Windows 98/ME back in 1999 but times have changed. Windows 7 caught up. Windows 8 is sweet and without the UI is a serious contender. MS will eventually fix this and where will linux be next? The kernel runs great on my phone (yes, not WinCE but the actual same kernel as the dekstop) and is faster than Android and lighter.
Can microsoft ever compete with something thats free? Nope.
> My friends get it for free from the pirate bay.
You know, just like prostitution and other crimes, piracy -- when understood in its real nature of unlicensed copy distribution -- is actively repressed with routine police raids over here.
Some years ago it was even done under follow up of M$ -- probably invited so they see we're really serious about it in Brazil.
I heard over the radio a few years ago:
"An M$ worker did go to a place under Police surveillance to do his own investigation, posing as a buyer:
M$ dude: -- Do you have a Windows CD?
Pirate guy: -- Sure, which do you want? 2000 or XP?
M$ dude: -- XP. How much for it?
Pirate guy: -- That will be 5 dollars. There you have it.
M$ dude: -- 5 dollars for a Windows XP CD? Wait a minute, this is not an original CD, it's a copy!
Pirate guy, with a serious "professional" look: -- Sir, come again in 30 minutes, I'll get you a Windows original disk, if you want the real thing. But that will cost 10 dollars".
Sometimes I think Brazil's animal spirit / shaman guide is Daffy Duck... 8-D
quality initiative this is not - i'm pretty sceptic about giving manufactures an incentive to produce even cheaper devices - this is netbooks all over again, only worse. it's not as if windows is not already synonymous for wonky, plasicky gear that might or might not work given some tape, crap-/bloatware removal and some exotic drivers- after this move that status will be more than cemented in.
One of the key purposes of Windows 8 was to start raising hardware requirements. Laptops under $250 shouldn't be part of the Windows ecosystem, they shouldn't exist. Microsoft should be glad to lose them. This price cut is going to give a huge advantage to devices under $250 and create a void between $250-400. Bad, bad inconsistent.... If anything they should be doing the opposite. Make Window 8 $150 on cheap devices and maybe free or even subsidize expensive devices. They need to drive their customers up market after almost two decades of driving them downmarket.
Google TV, Buzz, Google+, Nexus Q, Google Wave... etc. etc.
And ads are still 90%+ of the business...
They don't hit a home run every time they swing the bat, nor did Steve Jobs, Scott McNealy, or Steve Ballmer. But Google knows when to cut their losses and move on; Jobs was also very good at that, McNealy and Ballmer not so much. It's too early to tell with Zuckerburg, but the GP presents a good argument that he's in the process of blowing it.
I have owned a Linux PC shop for 15 years, and have never once either purchased or sold a copy of Windows. Yet, two or three times per year, I get served a C&D insisting I stop selling PCs because I haven't paid for the copy of Windows on them, and threatening criminal charges if I don't.
I've been hauled into court twice, and have had my store ransacked by BSA thugs with cooperation from Law Enforcement a number of times over the years.
This is the kind of shit you're supporting if you buy a Windows box.
I see you've established a career in missing the point. First, the list of dropped Google products is a non sequitur when talking about Google's strategies against its rivals. It's like dismissing Apple's iOS moves because they stopped making the Cube years ago. Second, Google not caring about making a big profit on a product can be a feature, not a bug, if doing so cuts their rivals off at their knees. Like the aforementioned examples of Chromebooks and Google Docs.
A cut in the price of Windows will improve the margins on devices like Dell's Venue 8 Pro. But I suspect they were already getting a price much lower than $50. It will also mean a resurgence in low-end Windows laptops, basically netbook redux - basically take a Chromebook platform and put in more flash memory.
Do you know what would make me give up Windows regardless of the price ? The day the tools I need to use are available on another OS first.
Right now it seems every time a program comes out, the first commentaries every time are when will a Mac pour Linux version be available. Which may or may never happen.
When you have a monopoly, you can hold prices high, and that means that you provide 1 purchase and 5 pirate copies.
When the price is reasonable $15.00, users would rather pay, than pirate. It is an affordable rate. Perhaps that will result in a 1 to 2 ration instead of a 1 to 5 ratio.
Leslie Satenstein Montreal Quebec Canada
How is Microsoft a Rival though? They absolutely dominate the ad market. Microsoft has almost no presence in the ad market. Chromebooks are a novel experiment but I don't see them threatening Microsoft in the slightest. After all you can run Chrome on a Windows 8 device (for $15 now even).
I see GoogleDocs as an effort to grab some stragglers but it doesn't seem to be a big money maker or a large enough investment on Google's part to warrant Microsoft's attention. After all the Office division is still showing growing sales.
I would say attributing these as efforts to hurt their competitors both overestimates the harm that's been done and the intentions beyond the obvious attempts at a second trick for their pony.
Google can't sit on their laurels. If 90% of their products aren't significant cash cows then their ad business can't indefinitely fund their experiments. Eventually someone is going to knee cap their adwords revenue. They need more sources of income. It might look like a strategic "win" to pressure their "Competitors" but Google needs another big win.
Go Google!
Will be commuted directly to the consumer, such that the $250 price point will now become a $215 price point. I'll just sit here and hold my breath while I wait for those savings to materialize....