Windows RT Will Cost OEMs Over Twice As Much as Windows 7 310
MrSeb writes with this excerpt from Extreme Tech: "Good news: Last month's unbelievable rumors that a Windows RT (Windows 8 ARM) licenses would cost OEMs $90-100 were off the mark — in actual fact, as confirmed by multiple vendors at Computex in Taiwan, the Windows RT license cost is only $80-95. At this point, we're not entirely sure what Microsoft's plan for Windows RT is. It would seem that Microsoft doesn't want to flood the markets with cheap Windows RT tablets. At this rate, though, we would expect the cheapest Windows RT tablets to hit the market at around $600, with top-spec models (if they exist) in the $800-900 range — well above Android tablets or the iPad. We can only assume that Microsoft doesn't want to go head-to-head with iOS and Android, instead trying to stake out a position at the top end of the market. Whether this is a good plan, with x86 tablets and their full 20-year PC ecosystem also vying for market share, remains to be seen."
For comparison, sources say that Windows Phone 7 ran OEMs the equivalent of $30 per device, and Windows 7 for desktops around $50.
Office included (Score:5, Interesting)
Isn't Office included on Windows RT? I think that is the reason of that higher price, some big corporations have so disconnected divisions that each one demands their cut to meet their yearly quota and do not see the big picture
Doesn't want to flood the market?! (Score:4, Interesting)
Okay, this bit I don't get:
It would seem that Microsoft doesn't want to flood the markets with cheap Windows RT tablets.
If what we see on PC's is anything to go by, this sort of pricing strategy will have the exact opposite effect. Manufacturers will grit their teeth, pay Microsoft and then cut every other conceivable corner they can think of in order to build products down to a price.
iPad has nothing to worry about (Score:4, Interesting)
Re:What is Microsoft thinking? (Score:4, Interesting)
They survived Vista so they'll survive Windows 8, Microsoft is far too entrenched to flop in one generation. Much like Intel when they were selling PIVs and Itanics, they still come back to be on top of the game. I run Windows 7, it works very well and with extended support even my Home Premium is supported until 2020. It's not like there's going to be a pressing need to use Win8 for many years yet, assuming it actually ends up that bad.
Re:we are in the era of Good Enough (Score:4, Interesting)
Lets be honest, this is about Office.
Microsoft is still living in that fantasy land where MS Office is relevant or necessary to everyone with a computer.
Apple's Pages and Google Docs cover about 95% of the consumer population. I'm not even mentioning all the 3rd party, dirt cheap apps which have carved out their niches and do some tasks far better without the pricetag or the bloat of Office suite.
I do love unending analyst guarantees (10 year running) how Office is this one thing that will turn the tide by making Microsoft cool and relevant again. Then the kids will finally discover the joys of mail merge and start sharing their hip-hop playlists with their friends at the Microsoft store.
WinRT comes with Office (Score:4, Interesting)
All the reports say WinRT is including Office RT. Its as simple as that. WinRT comes with Office, so it costs more.
Win8 bundled with Office would cost more, too.
Re:What is Microsoft thinking? (Score:4, Interesting)
Sure, Microsoft will survive on the desktop and on "classic" laptops. Windows 7 is good enough to keep them in business for those types of device, even if Windows 9 takes another five years to produce. Windows 7 will just become the new XP.
But for touchscreen devices, Windows 7 is not fun to use as it is. Neither are most existing Windows applications. So Windows 8 (RT) starts from a difficult position and I could imagine the pricing as described is the final nail in its coffin.
Which would give iOS and Android time until Windows 9 to get even more entrenched on smartphones and tablets. That cannot be good for Microsoft.
Re:What is Microsoft thinking? (Score:5, Interesting)
It's possible they realize the folly of Windows RT and are trying to make it possible but not probable.
It's not really clear who windows RT is actually going to be good for. It's clear who it's aimed at. But if the whole plan is to have a single windows 8 family why the hell would you buy the ugly incompatible step child of the family? That doesn't mean windows RT will be bad, or won't behave exactly the same from a user perspective as x86/IA64, at least until they go to install software and find out nothing works. But for a tablet the whole advantage of windows is that it runs windows software, if it's not going to run windows software... why would you want it?
The fact that intel and AMD haven't really kicked into gear for mobile has hurt microsoft a lot. There should be x86 phones running well... actual windows. And there should have been for 5 or 6 years at this point. I have a 6 year old touch and pen enabled windows XP tablet that behaves pretty much exactly as you'd expect a touch device to, other than the whole having a fold out keyboard because it's a convertible laptop, and I have a touch enabled windows vista HP laptop thats about 4 years old that's the same deal.
I'm still struggling to figure out what Windows RT is aimed at. Maybe it's for emerging markets and developers for emerging markets? It's possible they want regular windows as the main product line in rich countries, and poor ones that only get arm devices to have a cheap edition? Selling a cheap tablet to compete on price with the iPad in any market is a stupid plan if there's no software for it, which seems to be what windows RT would be, that's just going to make millions of customers angry, fast. Making a shitty product more expensive doesn't make it a better product, but it might make manufacturers think twice about trying to stuff it in every pile of bad hardware they can shovel out the door. But as you say... who whole strategy seems internally inconsistent.
Re:Good news for AAPL investors (Score:4, Interesting)
I don't having any beliefs one way or another if MS will succeed. It does seem to me that MS is banking on two concepts from their past: they can get into Corporate America better than Apple or Google, and Corporate America will want their tablets and smartphones to say Winders because their laptops and workstations do. MS has never held its customers in high regard and so I believe they think this strategy will work for them.
Maybe it will, maybe it won't. I don't have any faith that Corporate America has very much intelligence. What may make things different this time is that MS is late to the party leaving CA with time to try alternatives and attempts to get them integrated into their businesses. Once CA finds that RT doesn't allow them to carry over any previous MS investment except maybe their mail server infrastructure, then CA might not be so accepting. On the other hand, all MS has to do is lie their ass off about "new" technologies to come from MS and that buying into RT systems now will allow them experience the joys of this new tech...blah, blah, blah.