Microsoft to launch low-cost Windows tablets in India

NEW DELHI: Microsoft will launch low-cost Windows tablets in the coming months, specifically made for consumers in India. The tablets, which could sell for as low as Rs 10,000, will help Microsoft achieve price parity with Android devices in the market. The tablets will likely be made by Microsoft's traditional computer partners like HP and Dell as well as by local Indian firms like Karbonn and Lava. In India, the market is dominated by devices running on Google's Android, mostly because these tablets are cheap, affordable and easy to find. In developed countries like the US, Microsoft competes with Android tablets with Surface devices, which the company believes are too expensive for markets like India. "We are reducing our required hardware specification for Windows to bare minimum that is needed for good experience. We want to be price competitive with Android. We want to get the bill of material for Windows tablets down," Amrish Goyal, director of Windows business group, told TOI. "We will probably not sell a tablet for Rs 5,000. But yes, we will sell tablets with a price of around Rs 10,000 by middle of this year," Goyal added. While Goyal refused to confirm that Microsoft was slashing licence fee it charges from its hardware partner for Windows 8.1, there were reports that to help companies create low-cost tablets the software giant might slash its Windows licence price by up to 70%. For devices that cost less than $250, the company would reportedly charge $15 for Windows instead of usual $50. With the personal computer market, where Microsoft is very strong, almost entering negative growth phase, for Microsoft as well as its hardware partners, tablet market is very crucial. So far, Microsoft has been slow to address this market. Most of the Windows tablets available in the market currently are targeted at "pro" users and sell for a hefty premium compared to iPad and Android tablets. Most of these tablets cost around Rs 30,000 or more. In comparison, Android tablets like Nexus 7 (older version) are available for less than Rs 10,000. According to Gartner figures released on Monday, Microsoft sold 4 million tablets worldwide in 2013. This gave the company a market share of 2.1%. In comparison, Apple sold 70 million tablets and Google's Android powered 121 million tablets. Vishal Tripathi, Gartner's principal analyst who tracks the tablet market, said if Microsoft can deliver on its promise, it will definitely benefit. "The Windows brand still resonates with people. They use Windows computers in offices. They are comfortable with it and if they have an option to get a Windows tablet at price that is similar to an Android tablet, they will likely pick it," he said. "A low-cost Windows tablet is not going to shake the market but it will help Microsoft gain some consumers who will otherwise go to Android." He added, "A Rs 15,000 Windows tablet with decent build quality and touch response will also interest a lot of enterprises that are looking to get tablets for their employees." But at the same time, challenges for Microsoft remain. Tripathi said that the app store on both Windows 8.1 and Windows Phone remains poor compared to the Play store available for Android. "Still there are many apps that are missing. If consumers don't find apps they need, they will not buy a devices whether it runs Windows or not," he said. Maintaining quality as well low price will be crucial. "The level of acceptable quality for Windows tablet is going to be higher than what it is for Android tablets. People associate Windows on computer with ease of use and powerful experience. They will look for the same in a Windows tablet," said Tripathi.   TOI