Microsoft Drops Windows Price by 70 Percent

Microsoft Corp dropped prices of its Windows products by 70 percent to reclaim market share lost to Google and Apple.

As devices running on Google's Android software and Apple's iOS become progressively in demand compared to personal computers, Microsoft's market share is also progressively declining.

According to the market research firm International Data Corp. (IDC), global computer shipments declined by 10 percent last year and are expected to continue declining this year. Sales of mobile devices, on the other hand, are on the rise. Market share of tablets, which use Google and Apple operating systems, account for the 95 percent of the market and is anticipated to increase by roughly 16 percent all the way through 2017.

In able to take back what is lost, people familiar with the new pricing scheme said that the software giant has resorted to slashing 70 percent from its Windows licensing fees, Bloomberg reported.

With the new program, instead of paying $50 original to preinstall Windows 8.1 on devices that are sold from $250 and below, equipment manufacturers (OEM) will just need to shell out $15 per device. Devices do not need to be touch-screen compatible to qualify. Furthermore, the company will remove any restrictions, including types and hardware sizes, as long as the device meets the required low retail price.

Aside from those, Microsoft will also loosen up a bit when it comes to its licensing standards by letting manufacturers use low-cost rates to give away logo certification.

According to sources, the newly appointed Microsoft chief executive officer Satya Nadella is working to hasten development and launching of new devices, and reducing licensing fees plays a role on that marketing strategy, Apple Insider reported.

Julia Kelly-Echeverio, a spokesperson for Microsoft, declined to comment on the issue.

Weeks ago, Microsoft was reportedly "seriously considering" allowing Android applications to run on its Windows operating systems. If it prospers, such move will let the company enjoy Google's share of the mobile device market.