A 70 percent cut down in prices to deal with the competition from Apple and Google
Price cutting seems to be the best possible way to deal with tough competition and this is exactly what Microsoft has done. They are cutting down the price of Windows 8.1 by 70 percent. This is being done for the low cost producers of computers and tablets. $15 will be charged to the manufacturers for the license of Windows 8.1for pre installing it on the devices which retail for below $250. This is a huge price cut with the license being offered at $15 instead of the usual $50. This discount is particularly for the mentioned price range of product and so far price is the only criteria; the size and type of products is not important.
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The revenue at Microsoft has certainly been cut down due to the tough competition given by Apple and Google at the same time. There was a huge decline posted for the devices and consumer licensing division which was so far the company’s largest decline. The $80 billion tablet market is just growing bigger and bigger and Microsoft has taken a step to deal with things in their competitive framework by providing incentives for PC makers to sell cheaper models.
The sales for the licenses of Windows 8 have exceeded way beyond 200 million since the year 2012 and this isn’t so impressive compared to the adoption rate of the Windows 7. The regular Windows list price was $50 but many manufacturers were given the waver by Microsoft at a price of $30.