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How can Microsoft cannibalize tablet market

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#1 FMH

FMH

    Neowinian Senior

  • Joined: 18-July 10

Posted 19 September 2012 - 20:43

Note: This is strategy/idea is for lower-end tablets only.


Microsoft should make a ~7 inch version of Windows Phone 8 (Windows Desktop access on small screens wouldn't make for good experience), and give it out for free to it's OEMs. They should make it at a tiny, or even at no profit whatsoever.

All the tablets would have a fixed memory space of ~32 Gb. This would increase the demand/production/consumption for 32 Gb SD card, and hence reduce its cost significantly.
Rather than producing three separate card sizes, we can produce one at a lower price. The reasoning behind the large size memory card, would be talked about later.


The screen dimension would also be very rigid. Giving developers and consumers a better experience. The same mass-production idea applies to this one too. Mass-producing one particular size (more cheaply), rather than producing several different types.


It would have it's own special app store. Microsoft would charge ~50% from the earnings of developers, and share half of it with the device manufacturers. Microsoft's software ecosystem is worth several hundred billion dollars, so we are talking about a lot of money here. Plus, Microsoft would have it's own services integrated on the device, such as Bing, Maps, Mail, SkyDrive; and would make money through that too.

OEMs would be required to give large SD cards on their devices, because their earnings would come through the usage of device. That is, the more apps the people use, more profit they will make!


Having a large number of OEMs would ensure that this form-factor is always up-to-date in terms of hardware (new devices every month!).
Their would be no price wars between OEMs, because it would have a fixed price.


This is the only way I see Microsoft and it's partners, not only competing, but destroying competitors like Kindle and Nexus. Those devices actually sell at a loss, and make money through apps.



Note: And where this: ~ has been used, it means that that particular value is not final, and has been used to just give you the basic idea.

And also, I think that WP8 interface with it's resizeable tiles is more suited to small tablets, than W8. For this form-factor we could have hybrid version, with best features from both (But no Desktop).


#2 migo

migo

    Neowinian Senior

  • Joined: 02-May 05

Posted 23 September 2012 - 21:14

Microsoft's primary revenue stream, aside from Office, is operating system licenses. The only way you can sell something at a loss is if you have something else still propping up your overall profits. If they did this, they'd cut out their primary revenue stream. Marketshare regardless of how they go about it doesn't benefit them the same way it does Google.

#3 ichi

ichi

    Akihabara Style

  • Tech Issues Solved: 3
  • Joined: 20-December 04

Posted 24 September 2012 - 07:38

This is the only way I see Microsoft and it's partners, not only competing, but destroying competitors like Kindle and Nexus. Those devices actually sell at a loss, and make money through apps.


I'm not really sure, but I read somewhere that Asus is making about $20 for the 8GB Nexus7 and $50 for the 16GB.

#4 articuno1au

articuno1au

    Neowinian Senior

  • Tech Issues Solved: 2
  • Joined: 20-March 11
  • Location: Brisbane, Australia

Posted 24 September 2012 - 07:44

They would get sued into the floor for antitrust breaches.

#5 TheExperiment

TheExperiment

    Starry

  • Joined: 11-October 03
  • Location: Elsewhere
  • OS: 8.1 x64

Posted 24 September 2012 - 08:02

That sounds silly...the sort of strategy iOS and Android are already using, in some ways...

So are you suggesting MS should just be doing what everyone else is, or what?

Windows RT will go great on 7" tablets once they can reasonably have 32GB storage in them.

Windows Store also already makes sure MS makes money through apps. And those services will already be integrated.

I'm kind of at a loss as to what you should read first.

#6 Joshie

Joshie

    Wandering NPC

  • Joined: 01-March 02
  • Location: Seattle, WA

Posted 24 September 2012 - 08:04

Note: This is strategy/idea is for lower-end tablets only.


Microsoft should make a ~7 inch version of Windows Phone 8 (Windows Desktop access on small screens wouldn't make for good experience), and give it out for free to it's OEMs. They should make it at a tiny, or even at no profit whatsoever.

All the tablets would have a fixed memory space of ~32 Gb. This would increase the demand/production/consumption for 32 Gb SD card, and hence reduce its cost significantly.
Rather than producing three separate card sizes, we can produce one at a lower price. The reasoning behind the large size memory card, would be talked about later.


The screen dimension would also be very rigid. Giving developers and consumers a better experience. The same mass-production idea applies to this one too. Mass-producing one particular size (more cheaply), rather than producing several different types.


It would have it's own special app store. Microsoft would charge ~50% from the earnings of developers, and share half of it with the device manufacturers. Microsoft's software ecosystem is worth several hundred billion dollars, so we are talking about a lot of money here. Plus, Microsoft would have it's own services integrated on the device, such as Bing, Maps, Mail, SkyDrive; and would make money through that too.

OEMs would be required to give large SD cards on their devices, because their earnings would come through the usage of device. That is, the more apps the people use, more profit they will make!


Having a large number of OEMs would ensure that this form-factor is always up-to-date in terms of hardware (new devices every month!).
Their would be no price wars between OEMs, because it would have a fixed price.


This is the only way I see Microsoft and it's partners, not only competing, but destroying competitors like Kindle and Nexus. Those devices actually sell at a loss, and make money through apps.



Note: And where this: ~ has been used, it means that that particular value is not final, and has been used to just give you the basic idea.

And also, I think that WP8 interface with it's resizeable tiles is more suited to small tablets, than W8. For this form-factor we could have hybrid version, with best features from both (But no Desktop).

Couple things.

1. No.

2. Sorry about number 1. That was rude of me. But seriously, no.

3. You've outlined a product model that requires a lot of OEMs and simultaneously gives them no reason to participate. All of their products must be exactly the same and sell at exactly the same price. What factor do they compete on, then? How do Samsung and HTC differentiate? If you're the idealistic type, you might answer with something like "quality", but that's naive and childish and doesn't actually happen.

4. You've ruled out Windows 8 because of tile customizability, despite Windows 8 having resizeable tiles already, and the fact that it wouldn't have a bunch of wasted, unused functionality (text messaging app, phone dialer, etc). Even beyond tile sizes, Windows RT is significantly more customizable than Windows Phone.

5. Your pricing scheme is also called collusion, and when done with the primary goal of eliminating competitors, is very much illegal. God help them in the EU, where two CEOs can be executed for nodding politely at each other from across the street.



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