Wintel: Oh, The Horror! Competition!

I don’t know whether or not it’s wishful thinking but rumours have it that “Microsoft plans to further decrease Windows 8.1 licensing rates for entry-level PCs priced below US$250 and tablets, from nearly US$50 currently to about US$15, according to Taiwan-based PC supply chain makers.”. Rumour or not, it’s a healthy sign that M$ and partners are even considering lowering their price. Monopolists hate to do that. They only do that when there is no other choice. That “dreadful” time has come and this time it’s permanent unlike the netbook which they almost succeeded in killing. Small cheap computers are actually getting space on retail shelves and they run FLOSS. 🙂

Small cheap computers are not going away. They are in the hands of over a billion people and are loved. M$’s market share is tanking. M$ is not loved fanatically like Apple and so cannot live in the high-priced top-end. Wintel will have to compete on price/performance forever to survive one year longer. The world can and does make its own software and the world now has a choice of CPU rather than the single-source bequeathed by IBM so long ago.

See Microsoft to lower Windows 8.1 licensing fees for entry-level PCs, say Taiwan makers.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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3 Responses to Wintel: Oh, The Horror! Competition!

  1. Quoth dougman, “Microsoft will eventually cave and start discounting Windows 8.1 to all of its customers.”

    I hope to live long enough to see the spring and summer. Seeing M$ return to Earth would allow me to die happy. In a perfect world, OEMs would just refuse to build PCs for M$ and switch to */Linux. All the ISVs and businesses would have to get with the new programme and M$ would just be a deflating balloon. M$ could retire and live off their annuities. That would be best for everyone.

  2. oiaohm says:

    Rolling out a fighter product did not fully work the last time. The competitor just came back stronger. Yes Xp fighter product got Linux netbooks out way only until the next generation of the tech came along. But they changed form and came back.

    The problem in Microsoft mind is what will the next Linux wave look like.

    systemd wayland….

  3. dougman says:

    “The downside of Microsoft’s price cut is that it devalues Windows 8.1 by placing a highly discounted number in the minds of manufacturers that sell devices priced over $250. If you were the CEO of a company that is paying $50 a license and now see that Microsoft is charging $15 for the same operating system to select customers, what would you do? While Microsoft may be the primary option today for high-end devices, were I that CEO I’d certainly demand a discount coupled with a veiled threat to work with Google to upgrade their Chromebook OS to be more applicable to fuller functioning products. For companies that enjoy large market shares – such as Microsoft – the thought of losing a major customer over price is cataclysmic. Trust me, I’ve been in those harried meetings. Ultimately, this limited discount means that Microsoft will eventually cave and start discounting Windows 8.1 to all of its customers.”

    http://blogs.hbr.org/2014/02/what-microsoft-should-have-done-instead-of-discounting-windows/

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