Microsoft cuts Windows 8.1 license fee to compete with Android Tablets

The ‘smartphones and tablets’ market is highly competitive with Companies like Apple, Samsung, LG and Nokia vying for increased sales. Cheap Android tablets have been most successful in several milieu. In order to promote cheap Windows Tablets, Microsoft has decided to cut down the license fee of Windows 8.1 for devices retailing less then $250.

Microsoft is said to be offering a 70 percent discount on Windows 8.1 for suppliers of low-cost devices like the Dell Venue 8 Pro, which starts at $229 at the Microsoft Store.

This news has been broken by Bloomberg who state that Microsoft plans to reduce the cost of licensing upto 70% for cheap devices.

PC makers are usually charged $50 for each Windows license. This price might come down to $15 for low-end laptops and tablets. This is not a new tactic by Microsoft. The Technology Giants previously provided Windows XP OEM to PC makers at discounted rates when Linux based Systems were getting popular.

The Cheap Tablets market is currently dominated by Google’s Nexus Tablets. This step will also promote cheap Windows tablets to emerge in the market.Tablet manufacturers like Dell who prefer Android as their OS might be tempted to produce Windows Tablets. 

Bloomberg is of the view that this price cut is aimed to challenge Google Chromebooks which have been pretty successful in the $300 range.

Either its Chromebook or Android, the Price reduction will have a positive and far-reaching effect on Windows 8.1 sales

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