Microsoft intends to push ultra-thin notebooks in the run up to Christmas and cash in on the opportunity to sell more expensive copies of Windows.
Chief Executive Steve Ballmer who was speaking at Microsoft’s annual Financial Analyst meeting in Redmond, Washington, said that Microsoft, along with others had “screwed up” because they had failed to deliver “cool” low priced, lightweight laptops with more functionality than the Netbook.
Yes Netbooks come out pretty good as far as price, power and coolness goes but they let consumers down with their smaller screens and keyboards says Ballmer.
What Ballmer wants to do is offer a range of ultra thin high performance laptops in time for Christmas in order to cater for those who would perhaps buy a Netbook but who would prefer a full size screen and keyboard.
For those who really want a standard Netbook, they are going to have to pay more than they do now due to price increases on Windows.
Windows 7 is due to be released in October and Microsoft is not wasting the opportunity to up sell to their customers.
According to Ballmer, selling low priced Windows XP on Netbooks wasn’t a good idea as it hurt Microsoft’s revenues.
When Netbooks first came out they ran with Linux based operating systems so Microsoft reduced the price of Windows XP for Netbooks in order to grab a share of the market and cash in on the growing popularity of Netbooks.
Now Microsoft reckons they have a “great chance” to up sell Windows 7 on Netbooks and Windows Home Premium on ultra thin machines.
“In Windows 7, we are going re-adjust those prices north,” Ballmer said
“With Windows 7 SKU line up, we have a great chance to do some up sell to Windows 7 Starter and Home from XP.”
So what sort of prices are we looking at?
Apparently we’re looking at between $45 and $55 for Windows 7 Starter Edition and for Windows 7 Home Premium around $119.99 for an upgrade and $199.99 if you buy it new.
“When a customer says we want a netbook with bigger screen we will say here’s an ultra thin,” Ballmer said. “We want people to be able to get the advantages of light weight performance and be able to spend more money with us and Intel and Dell and HP and others.”
So for Microsoft it’s all about the money but are the consumers really getting something worthwhile? Only time will tell on that one.
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