In an attempt to offer stiff competition to the popularity of Android based tablets, Microsoft now plans to launch a range of low-cost tablets, particularly for the price sensitive Indian market. Microsoft would possibly tie-up with their existing computer partners HP and Dell along with small players like Karbonn and Lava to manufacture the tablets. These Windows based tablets are likely to be priced as low as Rs 10,000 and will be available by mid-year.
In India, the tablet market is currently ruled by Google’s Android based tablets that are inexpensive and reasonable. Whereas in developed nations like the US, Microsoft’s Surface tablets face stiff competition from Android tablets which they believe are too costly for India which is a price sensitive market. Having said, this recent move by Microsoft has a huge potential especially in terms of revenue.
It is also being contemplated that Microsoft will cut its licensing fee radically since they will cost less than $250. As per the reports, Microsoft will now only charge $15 for Windows 8.1 licensing fee, which is a discount of 70% on each unit. With the availability of Windows on a tablet which is so very synonymous with powerful and intuitive user experience, the Indian consumers could give it a try especially when it is offered at a budget price of Rs. 10k along with a reduced licensing fee.
Now the big question –Will these tablets be completely new or will the same Surface tablets be offered at a lowered price? Would Microsoft be able to capture tablet market share with these latest offerings?