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Microsoft Charging OEMs $85 for Windows RT

It was presumed that Microsoft would offer its ARM-friendly version of Windows 8 -- aka Windows RT -- on the cheap given that both Microsoft and tablet manufacturers want to push Apple's own iPad into a dark little corner of the tablet market. Achieving this would not only mean providing a AAA experience, but a low price tag. Even more, Google doesn't charge manufacturers anything at all to use its Android platform -- the search engine giant makes its money off advertising, app and other media sales.

But apparently offering Windows RT for a reduced price isn't on Microsoft's list of goals. Various reports claim Microsoft is charging manufacturers between $80 and $95 USD for an OEM Windows RT license to be used on a tablet. That's roughly the same pricetag required for the OEM version of Windows 7 Home Premium for desktops and laptops,

"During our meetings with multiple vendors on the Computex Taipei, we were talking about pricing options for taking the Windows RT route instead of (free) Android from Google," reports VR-Zone. "While it was rumored that Microsoft decided to change their ways and offer a price of about 35 dollars – the reality is that Windows RT will cost staggering USD $80-95 dollars, with $85 being the most commonly quoted price."

That said, a Windows RT tablet with the same hardware specs as an Android-based tablet won't be equally priced unless the Microsoft partner plans to take a hit in the wallet. Nvidia's own bill of materials (BoM) has surpassed $100, leaving virtually no room for a sub-$500 tablet. So far there's talk that Windows RT launch tablets will range between $549 and $799 for mainstream consumers, and between $799 and $899 for premium models.

Meanwhile, Amazon, Google and Apple will reportedly invade the tablet market with their new 7-inch models hovering in the $200 range sometime before Halloween. Will Windows RT tablets be able to survive in a market saturated with these new premium entries? Probably not if Microsoft and its partners don't get the pricing under control.

  • killerclick
    That's still cheap considering it can run all x86 applications

    Oh wait, it can't
    Reply
  • nikolayivanov321
    Loving that pic though.
    Reply
  • vincentyu
    It comes with Office suite. That's why it's expensive. I'll bet it'll be much cheaper without the Office suite.
    Reply
  • outlw6669
    Way to go killing RT before it is even released, Microsoft :pfff:
    Reply
  • icemunk
    It's got fail written all over it.
    Reply
  • mariusmotea
    I don't belive this article, the price is too hight. Microsoft is trying hard to enter in to mobile market (this is the main reason for putting the metro UI in windows 8). They need developers attention to create applications for metro.
    Reply
  • molo9000
    mariusmoteaI don't belive this article, the price is too hight. Microsoft is trying hard to enter in to mobile market (this is the main reason for putting the metro UI in windows 8). They need developers attention to create applications for metro.
    I think the picture of Steve Balmer is enough to make this believable. ;)
    Still unlikely that Microsoft would be this mad.
    Reply
  • gsxrme
    I also feel this article is false due to a google/apple bashing.
    Reply
  • CaedenV
    killerclickThat's still cheap considering it can run all x86 applicationsOh wait, it can'tLOL
    vincentyuIt comes with Office suite. That's why it's expensive. I'll bet it'll be much cheaper without the Office suite.Win8RT comes with Office suite, there will not be a non-office version. What they need to do is have a 'home' and 'pro' version so that there can be cheap products for consumers, and then charge a little more for domain functionality and other business class services. Having a $100 OS will not make business buyers blink... but nobody is going to spend the same cash for a stripped down version of windows as they do for the real thing.
    Reply
  • fightingslu
    and this article is posted 13 hours after this article http://www.tomshardware.com/news/clover-trail-intel-ipad-tablet-hybrid,15977.html which claims the windows 8 tablets to be iPad killers
    Reply