Question have often been asked about how Microsoft Corporation (NASDAQ:MSFT) would continue making money when Windows business is no longer fetching big money as it did in the past. Investors are likely concerned about this challenge because, for a long time, Windows has been the bread and butter at Microsoft. However, the company is not scared about the changing landscape for Windows business because opportunities still exist to squeeze money from the business.
Device pricing tweaks
According to an article by Business Insider, Microsoft Corporation (NASDAQ:MSFT) appears to be looking for answers to the problem and the company is not far from one. To continue making money from Windows sales, Microsoft hinted at a shift that analysts have said may mean making Window machines cheaper and competitive.
Several computer manufacturers are already offering competitively priced Windows devices. For example, Hewlett-Packard Company (NYSE:HPQ) has a laptop device known as Stream 11 that goes for $200. Some other Microsoft partners are offering laptop and tablet devices for as low as $99.
Subscription based payment
Instead of charging a hefty fee for Windows OS, Microsoft could offer Windows on a subscription basis. Users can also be invited to pay more for some extra services. Reducing Windows entry point appears to be a top priority for Microsoft Corporation (NASDAQ:MSFT) amid competition. Some analysts have also pointed out that Microsoft and its partners could choose to give away free hardware in favor of subscriptions to services such as Office 365.
Microsoft Corporation (NASDAQ:MSFT) has already indicated where its heart is by allowing non-business mobile users to access some Office 365 features free. Such moves are expected to increase the uptake of Office as mobile users are also likely to have the software on their desktop computers.
Microsoft made Windows a $20 billion business by licensing the OS to PC manufacturers such as Dell, HPQ, Acer, Lenovo, and others. The company also made money from users that purchased upgrades of Windows. However, PC sales have been on the decline, and even competing OS have come to the marketing, causing the company to think about survival tactics.
Speaking at a technology conference organized by Credit Suisse, Microsoft’s COO, Kevin Turner, stated that they were exploring new ways to make Windows more profitable.
