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Old Feb 21, 2014, 11:42 PM   #1
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Microsoft to Cut Windows Licensing Price by 70% to Compete with Apple




Microsoft is set to cut pricing of Windows 8.1 by 70 percent for computer and tablet manufacturers, according to Bloomberg, partly due to increased competition from both Apple and Google in the PC space.

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Stronger competition from*Apple Inc. (AAPL)*and Google cut revenue last quarter at Microsoft's devices and consumer licensing division, which includes Windows software, as the computer industry posted its biggest annual decline on record. By offering incentives for PC makers to sell cheaper models, Microsoft may be able to increase its share of the growing $80 billion tablet market and stave off Chromebooks, notebooks that run Google's operating system.
Under the new terms, manufacturers will be charged $15 for Windows 8 licenses to preinstall it on devices that retail for less than $250. Previously, the fee was $50, although many manufacturers were able to pay $30 because of incentives provided by Microsoft.

The software company said last month that Windows 8 adoption was moving at a slower pace than Windows 7. Over the past several years, notebook and desktop PC sales have declined as lighter, more portable tablets have surged in popularity -- an area that, so far, Google and Apple have dominated.

In recent years, Apple has been the top vendor in the PC market, selling more combined tablets, notebooks and desktops than any other manufacturer. Research firm Canalys predicted that tablets would account for half of all shipped PCs in 2014, with Apple taking up 30 percent of tablet shipments, Google's Android taking up 65 percent of tablet shipments and Microsoft taking up 5 percent of tablet shipments.

Article Link: Microsoft to Cut Windows Licensing Price by 70% to Compete with Apple
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Old Feb 21, 2014, 11:47 PM   #2
DonJudgeMe
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70% off isn't free...
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Old Feb 21, 2014, 11:50 PM   #3
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70% off isn't free...
And it doesn't have to be free. If Microsoft wants to charge for their software/OS, then so be it. They make money primarily off software; Apple's main revenue stream is hardware.
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Old Feb 21, 2014, 11:50 PM   #4
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What happens to a software company that can't sell software?
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Old Feb 21, 2014, 11:53 PM   #5
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It says on computers and tablets selling for under $250. Not a very large percentage of devices, i'd imagine.
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Old Feb 21, 2014, 11:53 PM   #6
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Steve Ballmer would never let this happen.
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Old Feb 21, 2014, 11:54 PM   #7
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Most people don't want windows 8 and prefer windows 7, this is the true reason why they slashed prices, many pc makers have recently brought back computers with windows 7 pre-installed due to the demand for it.
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Old Feb 21, 2014, 11:54 PM   #8
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I do (regrettably) need to install Windows on my iMac this weekend... does this mean I can get Windows 7 for a lot cheaper (without becoming illegal) if I wait?
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Old Feb 21, 2014, 11:55 PM   #9
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Originally Posted by SJism23 View Post
And it doesn't have to be free. If Microsoft wants to charge for their software/OS, then so be it. They make money primarily off software; Apple's main revenue stream is hardware.
The only things that Microsoft has a modicum of success in are legacy OS and XBOX.
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Old Feb 22, 2014, 12:00 AM   #10
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Funny, I just bought Windows 8.1. I heard a lot of bad reviews, and I really can't stand the Metro side of it. However, for $4.99, I found a great little app, errr program called Start8 that gives me the start button functionality/look of Windows 7. I have to say I'm really liking it. I had the Win 7 Enterprise evaluation and really liked it. Haven't used Windows since XP. I need Windows for some clients and other small stuff, but I'm pleased with Windows 8.1. I'm running it in VirtualBox and it seems really snappy.

However, it was a pain to install. The ISO file I got from Microsoft would not install on it's own. I had to install the Enterprise 8.1, then install 8.1 over that. No issues. I removed the old OS via the Disk Cleanup and now it's good to go.
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Old Feb 22, 2014, 12:01 AM   #11
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Originally Posted by SJism23 View Post
And it doesn't have to be free. If Microsoft wants to charge for their software/OS, then so be it. They make money primarily off software; Apple's main revenue stream is hardware.
For now that hold true. In the long-term future, there is no money to made being an OS vendor - you either make money selling devices or services (through subscription or ads).
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Old Feb 22, 2014, 12:03 AM   #12
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Hey guys, does this mean I will be able to purchase a Windows 8.1 license for only 15-20 bucks, as a customer, for my current PCs? Or this only applies to retailers?
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Old Feb 22, 2014, 12:06 AM   #13
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Still overpriced. It's not even worth a $1 compared to OS X. My Wndows days are happily behind me.

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Originally Posted by peteullo View Post
What happens to a software company that can't sell software?
The do make pretty nice mice
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Old Feb 22, 2014, 12:09 AM   #14
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Poor Micro$oft lol
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Old Feb 22, 2014, 12:11 AM   #15
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It's a terrible time for Microsoft.

Google sells ads and makes money from it.

Apple sells hardware to make money

They both give the software free.

How Microsoft will make money from its software if competitors are giving away free.

Ouch! A terrible paradigm shift.
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Old Feb 22, 2014, 12:14 AM   #16
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Old Feb 22, 2014, 12:14 AM   #17
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Originally Posted by DonJudgeMe View Post
70% off isn't free...
OSX is not always free. It may have been this round. But it also alienated a lot of the older user base as well, which I'm sure they are hoping will convince people to upgrade older Macs.

Quote:
Originally Posted by From Apple Website
For the first time, you can upgrade your Mac to the latest release of OS X for free.
Now $20 is still a damn fine price for upgrading OSX.
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Old Feb 22, 2014, 12:19 AM   #18
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Originally Posted by Populus View Post
Hey guys, does this mean I will be able to purchase a Windows 8.1 license for only 15-20 bucks, as a customer, for my current PCs? Or this only applies to retailers?
This applies only to OEM's that are selling PC's $250 or less. If you are upgrading from a previous version of Windows or purchasing a full license, you pay regular price. So for the vast majority of people, it is business as usual.
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Old Feb 22, 2014, 12:19 AM   #19
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and they can't give it away....
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Old Feb 22, 2014, 12:21 AM   #20
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Microsoft should focus on enterprise, and compete with Oracle & IBM. Trying to compete in the consumer space with Apple and Android is lunacy to me.

Low end PC's, tablets, and phones will all be running Google's free OS, w/ android apps, and ecosystem.

Last edited by osaga; Feb 22, 2014 at 12:28 AM.
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Old Feb 22, 2014, 12:24 AM   #21
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Originally Posted by smulji View Post
This applies only to OEM's that are selling PC's $250 or less. If you are upgrading from a previous version of Windows or purchasing a full license, you pay regular price. So for the vast majority of people, it is business as usual.
What a pity
I'm mostly a OS X user, so not big problem, but for the PCs in my home would have been great news.

Thank you!
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Old Feb 22, 2014, 12:35 AM   #22
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I don't mind paying for something that works efficiently and user-friendly. Windows 8 did not provide this. Tablets were already taking over PCs by the storm, Windows 8 simply gave it a extra push, with it's awful Metro Style.

I can only see gamers, business sectors and students who need computers to do projects/papers. Tablets give a much better experience with social networking, their keyboard expansion has been greatly beneficial. At this point, it doesn't matter how cheap the operating system gets, even free. As a user pointed above, they should invest more in to an area like the business sector for greater profitability, catering to people whom will generate them a large margin of profit.
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Old Feb 22, 2014, 12:38 AM   #23
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MS should first decide what they want to do with this operating system. It's a tablet OS transferred badly to desktop. Or is it a desktop OS that works better in tablets due to bad design ?
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Old Feb 22, 2014, 12:42 AM   #24
Jessica Lares
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It's not going to make much of a difference. This helps the manufacturers to make $15 more, but what good is that if these things are still sitting idle on a shelf?
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Old Feb 22, 2014, 12:52 AM   #25
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Quote:
Originally Posted by akbarali.ch View Post
It's a terrible time for Microsoft.

Google sells ads and makes money from it.

Apple sells hardware to make money

They both give the software free.

How Microsoft will make money from its software if competitors are giving away free.

Ouch! A terrible paradigm shift.
Well, strictly speaking Android isn't entirely free. For one thing, after numerous lawsuits, Microsoft now collects considerable patent royalties from the Android device makers. I can't pinpoint an exact per unit figure, but collectively it's about $2 billion a year.
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