Microsofts Windows 8 Tablet option – make it a loss leader

Posted by on June 13, 2011 in Microsoft, Strategy, Tablet, Windows 8 Editorial, Windows 8 Enterprise | 4 Comments
Windows 8 Tablet

Windows 8 Tablet

It's been pretty amusing to listen to the bloggers and critics over the past few weeks as they have expressed shock and uncertainty about Microsoft's new UI tiled tablet UI for Windows 8.

Yes it is pretty radical but I think that Microsoft have a pretty straightforward option for moving forward with Windows 8 on the tablet.

In a sense, they are playing it just right. The traditional desktop UI will also be available and will probably definitely build on the strengths of Windows 7.

With the tablet it's not going to be that simple.

No one who knows anything about technology can credibly believe that when the Windows 8 tablet is launched, it's features will be able to go up pound for pound against an Ipad 3 or a more mature Android tablet.

Not. Going. To. Happen.

But, we have seen this scenario before - with the Xbox.

No one (including me) dreamed that the Xbox would ever be this successful and it has, in strong part due to Microsoft's secret P weapons - Price and Patience.

Microsoft was able to take a loss on each Xbox while they grew that business line and they had the patience to see it through. The approach should be no different here.

Apple are at maximum demand at their price points ($499 and up) but that leaves a tremendous opening for anyone who will offer a quality tablet at the $99 to $199 price point.

If Microsoft are willing to be a little patient and see the Windows 8 tablets as loss leaders, at least in the beginning, we might be in for an interesting race...

What do you think?

 

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  • R Canwood

    Microsoft is best positioned to take first place in the tablet race. With a worldwide installbase of more than a billiion custumors (business and consumers) using Windows on their computers, all seeking compatiblity and integration with other products (like tablets), I think Microsoft will definetively be a winner. And most of all, it won´t have to take a loss on it´s tablets. The tablet market is still young and Apple, even with it´s succes, will always be a niche player. Google has only acquired marketshare because Android was free to producers of smartphones. The desintegration within Google Android and Chrome OS will soon kill it. Only Microsoft is able to come up with a real competitive prodcut to Apple´s Iphone and tablet. W8 is the prove of that.  

    • http://www.windows7update.com Onuora Amobi

      Interesting theory.
      :-)

  • Pingback: Great article on Apple, Tablets and Competition on TheMacObserver.com |

  • ECM2

    Windows 8 X86 tablets for $99 to $199 -- never going to happen -- the cpu alone costs that much.

    WP7.5-derived ARM tablets for $99 to $199 -- ?