According to a recent report by the WSJ, Microsoft is reducing the price of Windows 8 and also Microsoft Office 2013 to its OEM manufacturing partners in an attempt to boost sales of touchscreen Windows devices.
The new deal will apparently mean that manufacturers will pay just $30 for Windows 8 and Microsoft Office combined. This is around $90 cheaper than normal, and could help boost device sales.
As OEM manufacturers will be paying around $90 less to Microsoft, they could pass this saving onto consumers, which would make for cheaper devices which in the end should help increase sales of Windows 8 based devices.
Impact on the Market
This strategic price reduction by Microsoft is expected to have a significant impact on the market. By lowering the cost of Windows 8 and Microsoft Office 2013, Microsoft aims to make its products more accessible to a broader range of consumers. This move is particularly important in the competitive landscape of operating systems and office productivity software, where alternatives like Apple’s macOS and Google’s Chrome OS are gaining traction.
The reduced pricing could lead to a surge in the production of affordable touchscreen laptops and tablets, making these devices more attractive to budget-conscious consumers. This could be particularly beneficial for students and small businesses looking for cost-effective computing solutions. Additionally, the lower price point may encourage more manufacturers to adopt Windows 8 for their devices, thereby increasing the overall market share of Windows-based products.
Benefits for Consumers and Manufacturers
For consumers, the primary benefit of this price reduction is the potential for more affordable devices. With manufacturers saving $90 on the cost of Windows 8 and Microsoft Office 2013, these savings can be passed on to the end-users. This could result in a wider range of budget-friendly options in the market, making it easier for consumers to access high-quality touchscreen devices without breaking the bank.
Manufacturers, on the other hand, stand to gain from increased sales volumes. The lower cost of licensing Windows 8 and Microsoft Office 2013 means that manufacturers can offer more competitive pricing, which could lead to higher demand for their products. This could also encourage innovation, as manufacturers may invest the savings into developing new features and improving the overall quality of their devices.
Moreover, the price reduction could help Microsoft strengthen its relationships with OEM partners. By offering more favorable terms, Microsoft is likely to foster greater loyalty among manufacturers, which could lead to long-term collaborations and mutual growth.
Source Gizmodo,
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