Microsoft has learned a good lesson from Android it seems. As a new business strategy ,Microsoft has announced it’s Windows 8.1 Operating system for devices bellow 9 inches screen , is free .
It is an enormous move from Microsoft in the history. Microsoft is known for it’s strict money making policy for long time .But the model of giving something free has been adopted after a learning curve,I guess .
Microsoft charges $10 per phone as a license fee for using Windows O/S from the manufacturers at present . The new move ,will encourage manufacturers to produce more cost effective Window Phone ,and throw many models in the market . The main rival Android is a freely available open source software ,that can be used and modified by anyone .This counter measure by Microsoft taken is to take over the market place .
Microsoft could not create a record in selling Windows Phone or could not see any remarkable growth against its competitors throughout many years.
Still Microsoft has the opportunity to make money on the OS when it is loaded into PCs,Tablets and larger devices .
Microsoft’s intension of going head to head with Google’s Android is obvious ,by this move .
Reducing a $10 from the production cost ,the companies can add some more values to the phone or use savings for the quality of packaging ,staff incentives etc ,or may be ,willing to pass the benefit as cash reduction to the customer directly ,depends on the strategy they choose .
Let’s see how the $10 going to change the game in the industry .