Windows RT tablet vendors reportedly dealing with price issues

Windows RT (also known as Windows 8 ARM) has been made mostly for the tablet market, at least at first. Those devices are designed to compete with Apple's iPad and with the many Android-based tablets on the market. Now a new report from Digitimes claims that Windows RT tablet vendors are encountering issues with the pricing of these products.

According to the report, which cites unnamed sources, Taiwan-based tablet vendors are able to price their products at between $300 to $350 for a 10 inch tablet running Windows RT, along with between $150 to 200 for seven inch tablets. However, the report claims that Microsoft's fee for including Windows RT adds another $90 to $100 to those tablet prices.

While tablet prices have gone down as a whole, especially since the launch of Amazon's $199 Kindle Fire in November, the report claims that tablet manufacturers don't have the added benefit of including sales of digital content in their revenues, as Amazon does with the Kindle Fire and Apple does with the iPad.

Windows RT tablets are not expected to be sold in large numbers at first when Windows 8 itself launches later in 2012; it is likely that most won't be ready to be released until sometime in 2013.

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38 Comments

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even with a 100 dollar fee, it's not that expensive. a good android tablet with tegra 3 is around 450. if the windows tablets are gonna be smoother and have more functionality than android tablets, then why not 450? iPads are even more expensive than that....

Then need to get their money somewhere in case 8 completely bombs on the desktop, they can then use that money to make up for their losses and to generate media lies to tell everyone that 8 was actually success.

{quote]Microsoft's fee for including Windows RT adds another $90 to $100 to those tablet prices[/quote]

If John was a journalist, he could make a couple of quick lookups or even a call to find out that this number is wrong.

At best people are conflating the RT and desktop Windows versions, and EVEN THEN this is still not the right number as Windows 7 OEM prices are less than $100.

So we are to believe that Windows 8 will COST MORE than Windows 7, especially the edition that is price equivalent to OEMs at around $20?

I know for a fact this information is wrong, and if John wasn't more interested in clicks to his articles, he would have got the real numbers and wrote an article refuting the insanity.

So...
Really?

The licensing fees for RT is not even anything close to that figure, these tech sites just like stirring up **** all the time. I don't even think a vendor would even pay that much for the full blown Windows 8 OS.

the cost of the tablet doesnt concern me but did I read that it wont be until summer of 13 that most tablets would be ready? I'd like a few to choose from when windows 8 comes out.

I have noticed that "rumors" about MS or Android are usually negative while Apple usually gets favorable coverage. The new iPad was mostly positive even though not much materialized but the Samsung and MS tablets are getting killed.

pwgarner said,
I have noticed that "rumors" about MS or Android are usually negative while Apple usually gets favorable coverage. The new iPad was mostly positive even though not much materialized but the Samsung and MS tablets are getting killed.

unfortunately business as usual.

and i don't believe that Win 8 RT tablets are gonna be expensive; i mean Microsoft wants to gain market share in the tablet land so it would be foolish to charge more than a iPad, witch already has a huge app ecosystem and brand name.

Melfster said,
It could be because they are including Office something android devices don't include.

the addition of Office alone covers the premium. I mean.. ur gonna get office on ARM.. anybody would shell an extra 50bucks for that.

$90-$100 is absolutely not the price. The source is incorrect. We already know that large vendors (Dell, HP etc. pay very discounted prices for Windows copies: less than $50 per copy. Microsoft has made it clear they are going to be very aggressive when pricing Windows 8. The OEM partners building WinRT tablets will enjoy similarly cheap prices. All the stink recently with removing DVD playback codecs is because they are lowering the price. Their reasoning is, why should a copy of WinRT incur the DVD playback costs when tablets don't include DVD drives.

Vannos said,
$90-$100 is absolutely not the price. The source is incorrect. We already know that large vendors (Dell, HP etc. pay very discounted prices for Windows copies: less than $50 per copy. Microsoft has made it clear they are going to be very aggressive when pricing Windows 8. The OEM partners building WinRT tablets will enjoy similarly cheap prices. All the stink recently with removing DVD playback codecs is because they are lowering the price. Their reasoning is, why should a copy of WinRT incur the DVD playback costs when tablets don't include DVD drives.

Plus, there's the simple advantage that Windows RT always comes with hardware, so there's little reason to price it outside of the limits of competition.

I expect tablets to start around $299 for 7" devices, and $399 for 10" devices. Remember, it's all about the software, which is why the Kindle Fire is selling 10x better than the Blackberry Playbook, despite the latter having more RAM and more storage space.

majortom1981 said,
The prices equal out to the ipad if you add in the price of all 3 apple office apps to the ipad.
Why would you add the price of the 3 apple office apps to the Windows tablet? According to this, the Windows tablet will be $300+$100 for windows = $400 including office apps which is less than the price of the iPad alone, not including office apps.

The "fee" are probably from MS requirement on the tablets (gyroscope, accelerometer, a specified number of hardware button etc.), not the software.

Anthonyd said,
The "fee" are probably from MS requirement on the tablets (gyroscope, accelerometer, a specified number of hardware button etc.), not the software.

I was thinking along the same lines, ish.

Anthonyd said,
The "fee" are probably from MS requirement on the tablets (gyroscope, accelerometer, a specified number of hardware button etc.), not the software.

That makes sense. There's no way you can build a tablet for $150 and include all of those things. If I remember correctly, the Kindle Fire is $200 and sold at a loss, and it doesn't have 1/2 of those things.

Anthonyd said,
The "fee" are probably from MS requirement on the tablets (gyroscope, accelerometer, a specified number of hardware button etc.), not the software.

Agreed. This is more than likely the issue...

I don't buy that at all, no way MS will price RT so high while knowing they'll be taking a cut of all app sales as well. They need mass adoption, they know this.

duddit2 said,
I don't buy that at all, no way MS will price RT so high while knowing they'll be taking a cut of all app sales as well. They need mass adoption, they know this.

Agreed.

PsYcHoKiLLa said,
I would believe it, MS trying to make up for the utter failure that Win8 is gonna be on desktop computers and laptops.

I lol'd.

Bear in mine MS charges what, $25 per android device, that's $25 for something they shouldn't even be charging, so I'd figure it to be about $50 they'll charge for win RT.

n_K said,

I lol'd.

Bear in mine MS charges what, $25 per android device, that's $25 for something they shouldn't even be charging, so I'd figure it to be about $50 they'll charge for win RT.


Microsoft typically gets around $5 to $15 from Android device manufacturers who license its patent portfolio.

n_K said,

I lol'd.

Bear in mine MS charges what, $25 per android device, that's $25 for something they shouldn't even be charging, so I'd figure it to be about $50 they'll charge for win RT.


I loled. Its $5-15

I seriously doubt using Windows RT increases the price $90 to $100. More like $25. I don't question Neowins posting of this but I do question Digitimes claims.

Vice said,
I seriously doubt using Windows RT increases the price $90 to $100. More like $25. I don't question Neowins posting of this but I do question Digitimes claims.

That price sounds like it would make more sense for Windows 8, not Windows RT, which is technically inferior in functionality so should cost less.

Vice said,
I seriously doubt using Windows RT increases the price $90 to $100. More like $25. I don't question Neowins posting of this but I do question Digitimes claims.

I could see it priced higher than other embedded Windows OS with the fact that they are including Office products with the OS.

Vice said,
I seriously doubt using Windows RT increases the price $90 to $100. More like $25. I don't question Neowins posting of this but I do question Digitimes claims.

And don't forget that price also includes Office. So it is not only the OS

Vice said,
I seriously doubt using Windows RT increases the price $90 to $100. More like $25. I don't question Neowins posting of this but I do question Digitimes claims.

With a price like that, it's going to be tough to compete with proven system of iPad.