Dallas, Texas 02/27/2014 (FINANCIALSTRENDS) – Microsoft Corporation (NASDAQ:MSFT) seems to be setting its sights on getting its ‘go to market strategy’ on its smart phone and mobile devices correct this time round, under the guidance of a brand new management team which is pushing hard to transform the software giant into a strong hardware player in the short term.
Microsoft Mulling Cutting Its O.S Licensing Fee
If reports surfacing from inside the corridors of Redmond based Microsoft Corporation (NASDAQ:MSFT) are to be believed, the firm is rethinking its licensing strategy for the Windows Mobile Operating system which is struggling to gain traction in the smart phone and tablet market which is dominated by the Android (open source platform which Google backs) and iOS system which is peddled by Apple Inc.
The latest inside information indicates that the software maker which has a steady revenue stream from its Windows O.S for desktops and laptops is all set to cut its licensing fee on its Windows Phone O.S by close to 70 percent in order to attract smart phone hardware manufacturers and OEM who produce the entry level smart phones to cater to the low end, high volumes market.
Microsoft Courting New OEM Partners via This Move
Based on interviews with hardware manufacturers, Microsoft Corporation (NASDAQ:MSFT) currently changes between $20 to $30 as license for its windows O.S from its hardware partners. If the new pricing strategy kicks in, the manufactures would be able to use the same O.S for $6 to $8.
This move, the company believes will help it gain larger market share of the entry level smart phone market. If this move does happen and graduates to becoming a success, then the halting moves made by Nokia in recent times to develop handsets which are Android O.S driven might die a premature death.