“There has been rapid innovation in the Windows category, as vendors such as HP, Lenovo, Toshiba and Acer have built PCs using a variety of new form factors. These products are struggling to take off as the difference in price between Android and Windows-based tablets remains high. â€˜Component pricing has been an issue, particularly with multi-touch screens, though scale economies make this less of an issue as demand increases. The price of Windows itself is a contributing factor and one that Microsoft must address as a matter of urgency. Its PC OEM partners are in an increasingly difficult position and consolidation in the PC market is inevitable within the next 12 months,â€™ said Tim Coulling, Canalys Senior Analyst.”
What can I say? I have been telling OEMs this for more than a year. When a monopolist pushes an OS at a price above the market on OEMs, they suffer. While the monopolist gets a huge cash-flow, the OEM works for nothing, just a tiny margin. While OEMs take a commission on the price of that other OS, they sell their hardware for next to nothing. OEMs are manufacturers, not salesmen for M$. Do framers work for $0 per hour plus a penny per nail? No. Do pilots work for $0 per annum plus a commission on snacks? No. Do surgeons work for $0 per annum plus a commission on sutures? No. They control their own affairs rather than dancing on the strings of a puppet-master. They all choose the products they use in their work rather than let a third party dictate. Perhaps OEMs will listen to Canalys or their own accountants… Using FLOSS is the right way for OEMs to cut cost of production and maximize profits. Car makers and makers of smart thingies know this. What’s wrong with OEMs of legacy PCs?