Report: Microsoft to spend $405 million to sell 16 million Windows tablets

A new report claims Microsoft has a very ambitious goal to sell a ton of Windows tablets during the biggest shopping period of the year, and it will spend a bunch of money to make that happen. Winsupersite posted up word, according to an internal Microsoft retail document, their goal is to sell 16 million Windows tablets during the holidays.

The report also claims that Microsoft will spend $405 million on their retail sales efforts to make that happen. That number is far higher than the $241 million retail budget in 2012. Of this year's spending efforts, $131 million will be used to fund incentives and offers to the public. That includes a $25 gift card in some markets when a person buys a new Windows tablet or touch PC hat will allow users to download apps, videos and music from the Windows and Xbox stores.

The 8-inch Lenovo Miix2 is one of the many Windows tablets on sale for the holidays.

The report also claims just 20 percent of new PCs that will ship to retailers this year will have Windows 8.1 pre-installed. Microsoft will offer some stores a Windows 8.1 Upgrade Kit that will be installed on a USB drive so that they can update PCs to the latest version of the OS. Microsoft has already launched its Windows "store-in-a-store" inside hundreds of Best Buy locations and the report claims other stores that sell Windows products have received updated retail kits.

Microsoft is already spending lots of money on TV ads that refer to Windows 8.1 as "the new Windows" and showcase things like the Start button. The report says that marketing message will continue through the holiday shopping season. However, selling 16 million tablets, even the recent cheaper 8-inch models like the Lenovo Miix2, shown above, is a huge number and it remains to be seen if Microsoft can reach that mark.

Source: Winsupersite | Image via Lenovo

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Microsoft, are late to the market again, and should put money towards lowering the prices of Windows tablets, well below iPads, so they become more appealing and affordable (especially here in Australia - why do they mark up the price by about 20% when the USD:AUD = 0.95:1?). If they can increase market share by 10% by doing this, I'd say they've been successful.

I decided to buy a Surface 2 with the Type Cover 2 instead of the iPad Air. I'm giving Microsoft a chance and I've had it for a couple of weeks now and I'm impress. YES lots of apps are missing, but many of them can be replaced by real Website, some can't be replaced at all.

I hope devs will embrace Win 8.1 Modern and make more apps soon. If not, well, I'll wait for the iPad Air 2 with the A7X, TouchID and 2-3Gb of memory....

Spicoli said,
People having been whining and complaining about Samung's changes to Android since the beginning.

says who? technically samsung is selling more than 75% of all android phones. so samsung's touchwiz is more popular than stock android (although I hate touchwiz) but there is sale data to back up my statement. in other word samsung's touchwiz is what people think android is.

trojan_market said,

says who? technically samsung is selling more than 75% of all android phones. so samsung's touchwiz is more popular than stock android (although I hate touchwiz) but there is sale data to back up my statement. in other word samsung's touchwiz is what people think android is.

Yeah, I don't think it's that. The galaxy range now has critical mass where people just "want it", rather than because of what it has. They will buy it simply because everyone else has one, then often struggle to use the damn thing, but it's all good, because they bought the galaxy phone.

I've seen this a number of times. They don't know what android, ios or Windows Phone is, they just want a galaxy phone.

exactly, and that's why I am saying Microsoft or anybody should learn from samsung. even with crappy and full of bug early galaxy phones such as original galaxy s and s2 they still managed to make everybody buy galaxy devices after gs3 which turned out to be OK on gs4 after all the primitive bug fixes. Looking at it now, Nokia and Apple make awesome hardware and their respective platform as far less buggier than touchwiz but samsung has the lead on market share. this is phenomenal. marketing is everything

All this is great, except it's only for US market. There is nothing at all in Europe, no store, no gift cards, too little and bad ads... I don't know how many devices Microsoft wants to sell in Europe... While Apple store and iPad ads coming everywhere.
same thing about services : Bing in Europe is only a 50% US Bing capabilities.. How do you want to increase Bing Market share facing a full Google. Please Microsoft, Europe is your biggest Windows Phone market share area... so, there could be more...

for the past year, if you wanted a windows tablet,or touch screen notebook, it would cost you $500-$600+. the majority of tablets sold are $300 and under in price. this year, windows tablets start at $250-$300 and up. touch screen notebooks are also going to be in this range.

rival mobile OSes are gonna be in for an ass whoopin'.

Man I hope so. I bought a Nexus 10 just for client demos and it's been great...but it sure would be nice to do some actual work on it in between meetings without spending a fortune.

Hahaiah said,
Man I hope so. I bought a Nexus 10 just for client demos and it's been great...but it sure would be nice to do some actual work on it in between meetings without spending a fortune.

$350 gets you a 10" touch screen windows 8.1 tablet with a keyboard dock.

Windows 9 for the desktop/ basic laptop. Windows 9 mobile for the phone and tablet. It's so easy. Why don't they just go with it, make Windows Desktop so amazingly easy to connect to Windows mobile that everyone wants it?

Yes I know it would need a name change but omg it would be so simple and make them the number one choice. Instead we have all this rubbish - Ive been a huge Windows fan since 95 and now I log into 7 over 8 simply because it does what i want on my desktop. My Dad has Windows Phone 8 and its so smooth but it just doesn't meet expectation. MS really annoy me, its like they want us to move away. Idiots!!! and this is with passion.

As long as Microsoft remains in denial with the continued future of laptops and desktops, their idiocy will continue. As for moving away, more and more viable Windows alternatives are becoming available. As they make one's transition from Windows easier, more people will move.

That's precisely the problem. There will always be a "wall" between "desktop" and "mobile," just by virtue of their totally different form factors and uses. What is needed is an OS tailored for each one and then a seamless method to exchange or synch data between them. This could easily be done with a common utility shared between the OSs.

TsarNikky said,
.....

What a ludicrous statement.

NT is tailored to the platform it runs on. It's called the HAL. The component services built on top further differentiate the platform.

What you types think is that the immediate UI clash is going to stay. They will work it out.

Much like they did between the server and the client by offering powershell. Even that is available at all levels, including RT.

TsarNikky said,
That's precisely the problem. There will always be a "wall" between "desktop" and "mobile," just by virtue of their totally different form factors and uses. What is needed is an OS tailored for each one and then a seamless method to exchange or synch data between them. This could easily be done with a common utility shared between the OSs.

Sort of like...Windows 8.1! The only wall in place is the one ignorant people like you keep erecting to justify your hate for the product. It already does this for people who are willing to try new things, like myself, and it works spectacularly.

BTW, there is no 'h' in 'sync'. Do not add it!

Gonna be a tough sell. I know several people getting new tablets for Christmas. Obviously the iPad Air and Retina iPad Mini are most peoples top choices however quite a few people who are not Apple fans are planning to pick up or have already picked up the new Nexus 7. With iWorks now included on all new iPads that is another tick for people wanting to do light document work out of the box too, something the Surface had the edge on with Office RT.

InTheSwiss said,
Gonna be a tough sell. I know several people getting new tablets for Christmas. Obviously the iPad Air and Retina iPad Mini are most peoples top choices however quite a few people who are not Apple fans are planning to pick up or have already picked up the new Nexus 7. With iWorks now included on all new iPads that is another tick for people wanting to do light document work out of the box too, something the Surface had the edge on with Office RT.

Definitely will be tough - I don't think its because of the product, but more because of the poor marketing in the past, and quite frankly, ignorant consumers. And yes some people will claim iWorks on iPads eliminate that advantage for MS, but no one can honestly say iWorks can even compare to Office... Free or not

Chsoriano said,
...but no one can honestly say iWorks can even compare to Office... Free or not

I disagree there. Sure iWorks doesn't do all the enterprise stuff Office does but consumers, who are the target here, don't need any of that stuff. It has been shown time and time again that Office 2000 still does much more than the average Office user needs. Writing simple documents, doing some home finances in a spreadsheet and the odd basic presentation for school or work are more than doable in iWorks.

That is what is dangerous about the free iWorks suite for Microsoft. It does enough for consumers be it students or basic computer users at home or even some more advanced users with clever spreadsheets for tracking their savings. iWorks does it all and does it well. It doesn't try to be the enterprise business office suite but it doesn't need to be and now it is free it makes getting an iPad a lot more attractive to people in my opinion.

As just one simple example (which obviously means very little but I will post it anyway as I am sure I am not alone) is that my mother and step-father and in their mid to late 50s and retired. My step-dad follows the tech scene a bit now he is retired and saw the iPad Air and the free iWorks suite. He emailed me the next day asking if it will be as good as Office 2007 which he currently uses for tracking his pension, finances, investments, etc. and my mum uses for some short stories. Currently they have a computer from 2008 which is on its way out now. He wants to replace it with an iPad Air and a hardware keyboard. For him it will be pretty much ideal and THAT is the big threat to Microsoft in my opinion. He doesn't want or need a new laptop when a tablet will do everything he wants.

This x1000. Office still has an edge though, when it comes to more power stuff and no one can deny that. But for most basic stuff iWork works flawlessly.

And most basic users are the majority of users, ones buying iPads, same one that still have windows xp and aren't upgrading their computers.

stevan said,
This x1000. Office still has an edge though, when it comes to more power stuff and no one can deny that. But for most basic stuff iWork works flawlessly.

And most basic users are the majority of users, ones buying iPads, same one that still have windows xp and aren't upgrading their computers.

That is my experience too. My mum and step-dad will no doubt get an iPad Air and a nice keyboard. My step-dad has a cheap Android phone which he likes and has borrowed an iPad 2 from a friend for a short holiday to watch some films on the long train journeys and really liked the touch experience. He always thought he would hate a touch screen and he probably would if that was the only input method but with a bluetooth keyboard and iWorks he will be able to do all he wants quite happily. One thing he is a little frustrated about is it not having a mini HDMI output as he would like to use it to hook up to the TV to play a movie or look at pictures. I explained he can do that with an Apple TV but he doesn't want to give Apple more money (his words lol). I wonder if there is a lightening to HDMI adapter for the iPads yet? Last I looked I didn't find anything but that was a year ago when the new connector just came out.

Disagree with this assertion

In this case, people want to sync their work to home with no issues. If it's not a 1 for 1 transition it's no good (i.e. spreadsheets)

Applies to students too, a majority of universities offer free Office 365 or Office 2013 programs dramatically discounted ($10)

Office is Microsoft's cash cow for a reason. It's Microsoft's most popular software.

IPad users? Office 365 viewer or remote access their Windows desktops. Done.

InTheSwiss said,
I disagree there. Sure iWorks doesn't do all the enterprise stuff Office does but consumers, who are the target here, don't need any of that stuff. It has been shown time and time again that Office 2000 still does much more than the average Office user needs. Writing simple documents, doing some home finances in a spreadsheet and the odd basic presentation for school or work are more than doable in iWorks.

That is what is dangerous about the free iWorks suite for Microsoft. It does enough for consumers be it students or basic computer users at home or even some more advanced users with clever spreadsheets for tracking their savings. iWorks does it all and does it well. It doesn't try to be the enterprise business office suite but it doesn't need to be and now it is free it makes getting an iPad a lot more attractive to people in my opinion.

As just one simple example (which obviously means very little but I will post it anyway as I am sure I am not alone) is that my mother and step-father and in their mid to late 50s and retired. My step-dad follows the tech scene a bit now he is retired and saw the iPad Air and the free iWorks suite. He emailed me the next day asking if it will be as good as Office 2007 which he currently uses for tracking his pension, finances, investments, etc. and my mum uses for some short stories. Currently they have a computer from 2008 which is on its way out now. He wants to replace it with an iPad Air and a hardware keyboard. For him it will be pretty much ideal and THAT is the big threat to Microsoft in my opinion. He doesn't want or need a new laptop when a tablet will do everything he wants.

This is exactly why people drive $5000 used cars everywhere. I mean, it gets the job done. Time and time again it's been proven I can get from point a to point b with a 1995 Ford Tempo. It's cheap to fix. It has automatic seatbelts. Why would I buy anything from today.

AvatarEW said,
Disagree with this assertion

In this case, people want to sync their work to home with no issues. If it's not a 1 for 1 transition it's no good (i.e. spreadsheets)

Applies to students too, a majority of universities offer free Office 365 or Office 2013 programs dramatically discounted ($10)

Office is Microsoft's cash cow for a reason. It's Microsoft's most popular software.

IPad users? Office 365 viewer or remote access their Windows desktops. Done.

Most people don't even know what sync means, let alone how to use it. Same thing goes with remote access. iWork follows the same strategy of being easy to use.

deadonthefloor said,


I totally agree. However, at this point it's like driving around a car on the verge of exploding during normal usage. Maintenance costs etc. etc.

That's how business works. You spend $30/item on advertising, but if you sell them with a $100 margin, you still make 70 bucks on each.

People like the new Dell Mini tablet it sounds like, there's also a number of other minis coming to the market with very good pricing plus bigger 10" ones still. 16 million is possible with good advertising and the lower pricing most of these have.

Brand awareness would be more accurate. It lifts the entire ecosystem not just their tablets. MSFT stores sell more than that.

neonspark said,
Brand awareness would be more accurate. It lifts the entire ecosystem not just their tablets. MSFT stores sell more than that.

Yeah, and even now MS does advertise other OEMs tablets in ads as well.