Microsoft's Free Windows Offer Pays Off

Microsoft's decision to ditch Windows licensing fees for small-screen devices has led to a raft of ultra-cheap Windows-enabled gadgets. Approximately 50 new manufacturers have taken advantage of the offering, with some Windows devices sold in the far East now costing less than a copy of Windows itself.

The move came earlier this year and is thought to be a response to the huge success of Google's Android operating system. Android is particularly popular with manufacturers because it's free to install onto their devices. That said, as tablet computers and smartphone prices have continued to drop, the license fee for Windows has become an increasingly significant portion of manufacturing cost.

For example, a manufacturer wanting to install Windows 7 on a device will normally pay around $50 for a license. While that price point might be affordable for a full-size computer, it makes a huge difference in the economies of scale for a tablet that might retail for $199 or less.

Nine Inches The Cut-Off Point For Free Windows License

Under the new rules, manufacturers no longer have to pay a Windows license fee for smartphones or tablets with a screen size of below nine inches. While that cuts out the largest tablet devices, it does cover a wide range of budget tablets at around the seven inch mark. Microsoft now says the offer will continue indefinitely. (Source: winbeta.org)

The offer has been successful thanks in part to the decision to make Windows 8 much more suitable to touchscreen devices without a mouse or keyboard. That policy is going to be kept in place and enhanced for the next system, Windows 10, though there's no word yet on whether the free licensing deal will cover the new system.

At the moment, event the cheapest Windows tablets in the US cost around $120. However, at a recent industry event in Hong Kong, two little-known manufacturers unveiled Windows tablets that cost the equivalent of just $65 -- far less than a consumer would have to pay for a copy of Windows on their PC. (Source: geek.com)

Ultra-Cheap Tablets Technically Limited

To be fair, the devices, made by Emdoor and Ployer, are both low-spec in terms of hardware. They only have 1GB of RAM, which will severely limit how smooth the device operates applications. That said, both devices offer a quad-core processor, which will help them better handle the multitasking that people expect from a Windows device.

It may be some time before Windows tablets get that cheap in the US, but the removal of the license fee may well kick off a virtuous circle: the more people buying Windows devices at the budget prices, the more developers will develop apps, in turn making the devices much more attractive to potential customers.

What's Your Opinion?

Would you be tempted by a sub-$100 Windows tablet? Do you think Microsoft is right to offer free licenses? Has the choice of operating system affected your decision to buy -- or not buy -- a tablet device?