Microsoft is focusing on designing low-cost two-in-one or hybrid device Windows tablets to boost sales in India. The company wants to have an edge against competitors which are flooding the market with bigger screen phones, more popularly known as phablets.
Rising demand for two-in-one devices
Microsoft has cut a deal with Indian vendors such as Micromax, Xolo, Notion Ink, Sakri and iBall to bring down the prices of devices that can function as a tablet as well as a PC, says a report from ET.
Vineet Durani, director of Windows Business Group at Microsoft India, told ET, “We have deep investments in the Chinese technology ecosystem as we are further trying to bring the cost down.” Durani added that these devices used to cost over Rs. 40,000 earlier (approx. $650), but now they can be purchased for as little as Rs. 15,000 (approx. $250) in India, and in the coming six months, prices are expected to drop even further.
Research firm IDC stated that Microsoft’s software can power more units in the tablet market over the next five years to reach 14% with 38 million shipments across the world. IDC expects demand for Windows-powered tablets and two-in-one devices to rise 41% year over year for the current fiscal year, totaling 7% of the global tablet market.
Whether or not Windows 10 will push Microsoft sales
Further, the research firm said that by 2019, Microsoft and its partners will have a 14% market share with 38 million shipments globally, and India will play a significant role in boosting sales. Microsoft’s Windows two-in-one devices will close the gap between PCs and tablets considering the drop in interest in 7 to 8-inch tablets. Durani stated that college students, first-time jobbers and users are especially demanding two-in-one devices as they require basis computing.
Additionally, it is expected that the upcoming Windows 10 OS will also trigger demand for such devices as there will be a unified store and zero fragmentation of apps. However, another report from IDC suggests that Windows 10 won’t be helpful in boosting PC sales because customers do not see the version as a reason enough to buy a new computer. In its recent report, IDC said that PC shipments are estimated to drop by 6.2% in 2015.
