While Microsoft continues to lead the way as the premier provider of operating system for the PCs, it has practically become a spectator in the mobile operating system arena currently lorded over by Google’s Android and Apple’s iOS.
In a bold attempt to give Google and Apple a run for their money, Microsoft officially unveiled the Windows 10 version for smartphones and tablets, reports the Wall Street Journal.
Microsoft Windows powers less than 15% of all new computing devices sold in the market. The rest of the market is with Google and Apple, who both made sure that smartphone apps and web services get the better of personal computing, Microsoft’s own playground.
And to make its offer juicier to users of smartphones and tablets, Microsoft is giving the Windows 10 mobile operating system edition for free. Experts believe that the sacrifice is a worthy strategy since the company expects to earn a good lot from its other digital devices.
A costly strategy
Microsoft is expected to officially roll out the Windows 10 later in 2015. Its strategy of free upgrade to Windows 10 mobile operating system edition is projected to cost the company as much as $500 million just in the first year of sales alone.
However, the company believes that it can recoup its investment on the Windows 10 mobile version for the likely sale of add-on apps and services on several other devices including health sensors to smartphones.
On January 21, Terry Myerson, executive in charge of Windows expressed strong hope that that their strategy, although costly, will paved the way for a more engaged user base, something that Microsoft did to the PC not too long ago.
Excited to see the reaction of users
Microsoft co-founder Bill Gates say the new approach of the Redmond-based company is very exciting and called it a breakthrough methodology. He said that he looks forward to user reactions on Microsoft’s strategy for the mobile version of the Windows 10.
The American tech company generates approximately 20% of its annual revenues from the sales of Windows. With its strategy, Microsoft is willing to forego a big piece of the $17 billion pie, by offering its mobile operating system software for free.
Analysts strongly believe that Microsoft would be losing from $300 million to $500 million in annual sales from Windows. These sales come mostly from people intentionally delaying the acquisition of new computing and mobile devices because the operating system in their existing devices is continually being updated and upgraded.
But Microsoft can more than compensate for it by selling add-on apps and services like the Office 365 which opens up larger user base for mobile devices running on Windows.
While other computer manufacturing companies like IBM and HP have been experiencing revenue decline, Microsoft seems to be the surprise package as it’s still making significant revenue from the market. It posted revenue earnings of $86.83 billion last year.