Microsoft to Cut Windows Licensing Price by 70% to Compete with Apple

Discussion in 'Mac Blog Discussion' started by MacRumors, Feb 21, 2014.

  1. macrumors bot


    Apr 12, 2001

    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.

    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
  2. macrumors regular

    Feb 21, 2014
  3. macrumors 6502a

    Nov 20, 2012
    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.
  4. macrumors regular

    Dec 13, 2009
    Scranton, PA
    What happens to a software company that can't sell software?
  5. macrumors 68040

    Dec 13, 2004
    It says on computers and tablets selling for under $250. Not a very large percentage of devices, i'd imagine.
  6. macrumors 65816


    Sep 2, 2010
    New York
  7. macrumors 601


    Jun 26, 2009
    long island NY
    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.
  8. macrumors 604


    Nov 26, 2007
    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?
  9. macrumors 68000

    Jan 14, 2008
    Houston, Texas
    The only things that Microsoft has a modicum of success in are legacy OS and XBOX.
  10. macrumors 65816


    Jul 11, 2008
    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.
  11. macrumors 6502

    Feb 21, 2011
    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).
  12. macrumors regular


    Aug 24, 2012
    Valencia, Spain.
    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?
  13. macrumors G3


    May 25, 2008
    Apple state
    Still overpriced. It's not even worth a $1 compared to OS X. My Wndows days are happily behind me.


    The do make pretty nice mice :)
  14. macrumors regular


    Jul 21, 2013
  15. macrumors 6502

    May 4, 2011
    Mumbai (India)
    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.
  16. macrumors 68040


    Jan 15, 2008
    Holocene Epoch
    The new guy's first action is to rearrange the deck chairs on the Titantic?

  17. macrumors 6502

    Oct 18, 2013
    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.

    Now $20 is still a damn fine price for upgrading OSX.
  18. macrumors 6502

    Feb 21, 2011
    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.
  19. macrumors 6502a


    Jan 12, 2013
  20. osaga, Feb 21, 2014
    Last edited: Feb 21, 2014

    macrumors 6502

    Jun 11, 2012
    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.
  21. macrumors regular


    Aug 24, 2012
    Valencia, Spain.
    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!
  22. macrumors 6502

    Jul 22, 2011
    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.
  23. macrumors 65816


    Jun 10, 2011
    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 ?
  24. macrumors G3

    Jessica Lares

    Oct 31, 2009
    Near Dallas, Texas, USA
    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?
  25. macrumors 68030


    Sep 3, 2011
    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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