Microsoft: Windows Mobile Device Prices to Dip Below $200

Consumers can expect prices of tablets and smartphones running MicrosoftMSFT +2.21%’s software to dip below $200 this year, says the company’s vice president of OEM partners Nick Parker.

“We’ll reach price points that are very industry competitive for 7, 8, 10-inch devices,” Parker said, speaking to reporters after his keynote at Computex, Asia’s largest computing show. “They will really surprise you. Last year, we were in the 3s, 4s, 500 dollars. This year, we’ll be 1s, 2s, 3s.”

He also said some Windows Phone smartphones will sell for under $200 in certain markets this year.

The fast fall in prices for Windows 8 devices is the result of Microsoft’s aggressive efforts this year to gain market share in the mobile sector. The market is dominated by Google, which offers its Android operating system for free to handset and tablet developers.

While Microsoft has traditionally charged for its software, it made Windows free this year for devices smaller than 9 inches, in an effort to bring the prices of Windows mobile devices closer in line to those running Android. The company also relaxed certification requirements for mobile devices, reached out to new manufacturing partners and made other efforts to encourage development of Windows tablets and smartphones.

Microsoft’s share of the tablet market was less than 4% last year, according to research firm IDC. Parker declined to say if the free offering of Windows is a permanent strategy for the company, or if it will return to charging next year.

But he emphasized that Microsoft had other ways to make money besides Windows licensing fees, such as the “freemium” model of its Skype video chat service and the launch of Office 365, which allows users to rent the software for a year instead of buying it.

Source:Wall Street Journal​