windows-8-price-ballmer-vs-nadell
Recently, Tapscape reported that Apple’s total computer sales (ie Macs, iPhones, iPads, etc) surpassed those of Microsoft. Some readers harumphed their indignant apathy toward the subject. Now, Microsoft has signaled their reaction to Apple’s milestone by slashing Windows 8 prices by 70 percent.

Of course, Apple and its ubiquitous iPhones, iPads and Macs aren’t the only challenges Microsoft faces. Google’s massive Android ecosystem and insurgent Chromebook are also eating away at Redmond’s once unassailable dominance.

Perhaps that is why Microsoft has decided not to cut, but slash Windows 8 prices by 70 percent. The company now offers Windows 8.1 to OEMs (original equipment manufacturers) for $15 when pre-installed on devices that retail for less than $250.

Previously, Microsoft had demanded a $50 Windows 8.1 license fee for under-$250 devices — that’s a massive 70 percent discount.

Windows 8 Prices: Fire Sale!

So, who cares if Apple now sells more computers than Microsoft? Quite obviously, Microsoft cares a great deal.

Even as Windows PC sales continue to implode, down by double-digits in 2013, tablet sales have exploded. Of that $80 billion market, Redmond claims only a minuscule, single-digit share.

The software giant’s standing, not to mention future prospects, in the smartphone space are equally dismal.

Microsoft’s response is to slash its Windows 8 price and race to the bottom. Is that a meaningful and proportionate response, or is the company just plain desperate and beyond saving?

Recently, the market punished Apple’s share price because Mac sales increased by only 19 percent and iPad sales a mere 14 percent rise. Google, for its part, is now challenging Apple as the world’s most-valuable company — GOOG shares continue to rise, almost inexplicably.

With competition like that, what chance does Microsoft stand? While Mister Softie in the enterprise might still be unassailable, the company is clearly facing down an ignominious exit from the consumer space…

What is your take?

Via: MacRumors, Image: Joy of Tech


9 COMMENTS

  1. Microsoft should have stuck with the desktop OS business model instead of trying to make everything look and work like a mobile device. There are still a lot of people who don’t want their digital life to consist of squinting at a tiny screen.

  2. Microsoft is still the 4th wealthiest company in the U.S. They’ve got plenty of money to burn and experiment with. It has always been said that Microsoft is too big to fail because of all the hooks it has into the Enterprise market. I think MS had no choice but to pursue mobile devices if their desktop empire is going away. All MS needs to do now is lower the price of the Xbox One by $100 and they’ll make plenty of money by stealing the consumers going for the PS4.

    Fortunately, Microsoft has nothing to worry about because those Enterprise buyers have been completely brainwashed over the years believing that no company can be run without Windows. Nobody ever got fired for going with Microsoft Server, Microsoft Windows and Microsoft Office. That was always the no-brainer answer for everything in IT. Most of those people had been trained early on like performing circus animals. Whatever the problem, just throw some Microsoft stuff at it and the problem will go away. All those old IT guys will have to die before Microsoft dies and that will be a long time coming.

  3. 200 million licenses for Windows 8, all at a far higher per unit price than anything from Apple. Gee. I wonder who is winning? The gadget maker, or that company that powers virtually every desktop in America?

  4. Poor Ronald Carlson… there he is on his apple mac choking on the apple stew… so out comes the mirrors & smoke dribble to make him & his ilk feel smug and the hope that MS will go away… keep dreaming Ronald… so funny…

  5. Given Mister Softies installed base, 200 million is an utter failure. Apple makes and sells more widgets and makes a lot more money. Microsoft as a consumer company is near death.

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