Boston, MA 02/25/2014 (wallstreetpr) – Microsoft Corporation (NASDAQ:MSFT) new CEO, Satya Nadella, means business which can be interpreted from the various steps and initiatives he has taken since he took over as the CEO of Microsoft. Satya Nadella has not only slashed windows price by nearly 70% to counter attack the competition from Microsoft’s rivals but has also targeted cheaper phones aiming for easy access and growth into global internet phenomenon. Microsoft is keen to surge ahead both in the field of mobile software and in the field of cheaper phones for developing markets which has high demand for the same.
Microsoft cuts prices of Windows 8.1
Microsoft has decided to take on its competitors head on and for this Microsoft Corporation (NASDAQ:MSFT) has agreed to reduce the price of its Window 8.1 version from $50 to $15 for makers of low cost computers and tablets. This reduction in price by Microsoft will lead to higher demand for its product thereby generating higher revenue for Microsoft. Analysts view this move by Microsoft as its tool to attack Google Inc. (NASDAQ:GOOG) Chromebooks which use Google’s operating system and are known to generate more revenue then Tablets which use Microsoft Window 8.1. Microsoft’s cost cutting strategy shall help in increasing Microsoft’s share in the growing $80 billion tablet market and thereby staving off competition from Google in this sector.
Microsoft’s interest in cheaper phones
Microsoft Corporation (NASDAQ:MSFT) has entered into a strategic partnership with Qualcomm for developing cheaper phones for developing or emerging markets. Microsoft and Qualcomm are reportedly working together on low cost phone designs which can be used by various handset makers in making or building their own devices. Microsoft has added many hardware partners including Lenovo Group Ltd. for making window smartphones. Microsoft is targeting consumers in less developed countries by planning to offer them cheaper smart phones thereby tapping into and accessing a fast growing market which has not yet been properly utilized by most of its competitors. Satya Nadella is making a smart move by trying to penetrate into a vast market which has huge potential for cheaper smartphones growth. Microsoft’s recent acquisition of Nokia’s (NYSE:NOK) handset unit will further help it in creating a strong market for Microsoft’s smartphones in developing and less developed countries. Microsoft Corporation (NASDAQ:MSFT) rules the roost in its PC business but how far these new steps will help Microsoft in creating a niche for itself in the mobile smartphone industry is something which only time can tell!
