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Anyone besides me starting to sense an impending disaster? The iPad is not cheap and to come out and say you cannot produce a Windows 8 tablet even though the entire operating system is geared around the tablet within the price point of the most expensive tablet currently on the market? WTF is going on over there!
If reports from Taiwan are to be believed, hardware manufacturers are struggling to create Windows 8 on ARM (Windows RT) devices that are competitively priced against Apple’s iPad and Amazon’s Kindle Fire. The reason? According to Digitimes, OEMs have to pay Microsoft $90-100 for a Windows 8 license.
While that $90-100 figure sounds a little bit on the high side (Microsoft historically charges OEMs around $50 for desktop licenses and $30 for Windows Phone 7 licenses), it doesn’t really matter: Even at $10 or $20, Microsoft (and OEMs) would be hard pushed to compete with Amazon and Apple on price. Apple effectively gives iOS away (it’s a hardware company, after all), and Amazon gets Android for free. Microsoft has to charge for Windows 8 and Windows RT because it’s a software company; if it didn’t, it wouldn’t make any money, which shareholders might see as a bit of a problem.