Microsoft understands that building its own line of Surface tablets is going to upset the OEMs, but it's doing it anyway because there's not much the OEMs can do about it.
on 07/27/2012 – Made popular on 07/27/2012
Microsoft (NSDQ: MSFT) might be planning to sell its Surface for Windows RT tablet for $199, a staggeringly low price to potentially counter Google Nexus 7 and Kindle Fire tablets. Is Microsoft ready to make some Surface tablets loss leaders, figuring to make up the shortfall on application and media sales, according to a published report?
Some OEMs and OEMs are far from convinced that Windows 8 will reinvigorate PC sales, and are worried that if Microsoft low balls the price of its Windows RT-powered Surface tablet, this could have a negative knock-on effect on sales.
Just what the hell is Microsoft doing making Windows free for small tablets and smartphones? Buying market share. By cutting the cost of Windows for smartphones, Microsoft is sweetening its pitch towards OEMs, providing new incentives to adopt its mobile platform.
It's a simple question, but without a simple answer. With all of the OEMs in the Android environment, none of them have ever released a phone with vanilla Android without the direct partnership (or prodding) of Google in some way.