Boston, MA 02/24/2014 (wallstreetpr) – The price wars in the software industry are now hitting up, with Microsoft Corporation (NASDAQ:MSFT) announcing it has slashed the price for Windows 8.1 by as high as 70% in a bid to compete with cheap products like the Google Chromebooks. Reducing the prices will make it easy for low end OEMs to roll out tablets and desktops to the less demanding end consumers.
Windows will now charge computer Makers $15 for the licensing of Windows 8.1 while also being allowed to pre installs it on devices retailing for under $50. It is being reported that there will be no restrictions on the type or size of a device, as long as it falls within the price limit. The move is a marketing strategy considering the sales for Windows 8.1 and 8 operating have been below par since being launched 15 months ago.
Windows 8 continues to lag Windows 7 in terms of sales for the same time period considering the latter sold a total of 240 million for the first year compared to windows 8 200 million. The slow pace by Windows 8 has also been affected by a decline in the sale of personal computers with smartphone and tablet sales soaring in the market. The decline in revenue from software sales was also impacted by a 10% decline in the shipment of global computers.
Fierce competition from Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) for the Past quarters cost Microsoft Corporation (NASDAQ:MSFT) revenue in the licensing and devices division which also included Windows software. Microsoft is currently offering incentives for PC makers who sell cheaper models as it tries to increase the growth of its $80 billion tablet market. Apple and Google currently command 95% stake with their operating systems that are being used in Tablets and smartphones
Microsoft Corporation (NASDAQ:MSFT) close the week on a high with its stock moving up by 0.61% to close Friday trading session at a high of $37.98.
