There is no doubt that the performance of Windows 8 so far has been below satisfactory. Microsoft is getting worried and trying every trick up their sleeve to turn the fortunes around for the latest version of its operating system (OS). However, everything they have tried so far has not worked and people are slow to warm up to Windows 8. In fact, some people have reverted back to using Windows 7 after not being satisfied with the experience they received when using Windows 8.
Moreover, the tablets launched by several companies running on Windows 8 are also not making a mark in the market. Dominated by Apple and Google, the smartphone market is one where Microsoft desperately wanted to make an impact but the Windows 8 devices have hardly been able to do so. Now, it seems as though the only thing left for Microsoft to try is to reduce the prices for Windows 8 and if the reports are to be believed, this is exactly what is going to happen in the near future.
However, the lukewarm reception and reviews which greeted Windows 8 do not inspire confidence in the market experts. Some of them have remarked that if people don’t want to use Windows 8, a lower price may not be reason enough for them to abandon using other OSs. Hence, Microsoft might not be able to convince them to use Windows 8 even if they are able to get it at a much lower price than they can right now.
It is the original equipment manufacturers (OEM) who are suffering the most because of the poor results for Windows 8. Companies such as Asus and Samsung have invested a lot of money in producing devices which run on Windows 8. Yet, the demand for the devices has been plummeting. In fact, Asus revealed that only 5% of the devices they sold over the past quarter ran on Windows 8. Microsoft is attempting to rectify the situation by lowering the OEM fees.
The OEM fee is paid by the company to Microsoft for its use of Windows 8 in the devices they have created. Because of the high OEM fee, their profit margin has come down drastically and they aren’t able to make the kind of money they expect from a high-profile OS. On the other hand, the arrival of cheaper devices in the market, especially those from Amazon and Google, means that people don’t have to buy the more expensive devices. They can find cheaper alternatives easily.
Maybe the OEMs will be able to reduce the prices they are charging for their devices should they have to pay less money to Microsoft for using Windows 8. Yet, the price difference may not be as substantial as Microsoft wants it to be. The OEMs do have to keep a profit margin and at a reduce price, that margin would decrease as well. So, whether or not Microsoft decides to go ahead with reducing the prices for Windows 8, the impact on the demand for the OS and its devices would be minimal.
In fact, the act may be perceived as desperate and some customers might abandon ship.
[Image via geosurf]