pc manufacturers

A potential price war is imminent as Microsoft launches their Surface tablet powered by the Windows RT. But while Microsoft seems to be going to dominate the tablet segment powered by Windows RT operating system branded PC manufacturers are going to find it difficult to match the price and keep it reasonably attractive for customers. The reason is Microsoft has decided to keep the licensing fees for the Windows RT operating system rather stiff for all branded tablet manufacturers. They have also decided to keep the entry price point for their Windows Surface RT tablet 32 GB version, powered by chipsets deigned by British chip maker ARM Holdings Plc., at a lowly US$499. This is going to ensure that it competes very aggressively with the iPad which has a similar price tag for its 16 GB model.

On the downside, the branded tablet manufacturing companies vying for a spot in the market are going to find it difficult following the decision by Microsoft to charge them a hefty $90 – $100 for the Windows RT licensing fees. This will cause them to lose most of their competitive advantage. It costs about $300 for making a Windows RT tablet and then the added licensing fees. The pressure applied by aggressive big competitors like Apple and Microsoft will certainly make life difficult for branded PC manufacturers.

The Taiwan based notebooks assembling company Pegatron Corp. seems to be emerging out of this fiasco as the clear winner. They are currently the sole assembling contractor of the Windows Surface tablet. With the branded PC market slowly becoming smaller, branded PC makers such as Lenovo, Samsung and Asustek would find going a bit difficult for them.

On a different note, Surface tablet shipments have been projected to hit the 3 million mark by the end of the current quarter and the projected figures for 2013 is said to be 9 million.